Changes to First Home Owner Duty Concessions and Off-the-Plan Duty Concessions in WA

26 Mar 2025 Posted By: Porter Matthews Metro

The Western Australian State Government has announced significant changes to the concessional rates of transfer duty for first home buyers and off-the-plan property purchases. These changes, set to take effect from 21 March 2025, aim to make homeownership more accessible by increasing value thresholds for duty exemptions and concessions.

Key Changes to the First Home Owner Rate of Duty

The revised duty concessions will allow first home buyers to benefit from increased value limits for both vacant land and established homes.

For Vacant Land Purchases:

  • The maximum property value eligible for concessional duty will increase to $450,000 (previously $400,000).

  • No duty will be payable on vacant land valued up to $350,000 (previously $300,000).

  • A reduced rate of duty will apply for land valued between $350,000 and $450,000 (previously $300,000–$400,000).

For Home Purchases:

  • The maximum home value eligible for concessional duty will increase to:

    • $700,000 for properties in the Perth Metropolitan and Peel regions.

    • $750,000 for properties outside these regions (previously $600,000 for both).

  • No duty will be payable on homes valued up to $500,000 (previously $450,000).

  • A reduced rate of duty will apply for homes valued between $500,000 and $700,000 in Perth and Peel, and $500,000 and $750,000 in regional areas (previously $450,000–$600,000).

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Off-the-Plan Duty Concession Updates

The State Government has also announced an extension and expansion of the off-the-plan duty concession, aimed at encouraging new property developments.

Key Updates:

  • The concession deadline has been extended to 30 June 2026 (previously set to expire on 30 June 2025).

  • Increased property value thresholds for pre-construction contracts:

    • No duty on properties valued up to $750,000 (previously $650,000).

    • A 100% duty concession applies to properties up to $750,000, reducing to 50% for values between $750,000 and $850,000 (previously $650,000–$750,000).

    • A 50% duty concession applies to properties valued above $850,000 (previously $750,000).

  • Increased thresholds for under-construction contracts:

    • A 75% duty concession applies to properties up to $750,000 (previously $650,000).

    • The 75% concession reduces to 37.5% for properties valued between $750,000 and $850,000 (previously $650,000–$750,000).

    • A 37.5% duty concession applies to properties valued above $850,000 (previously $750,000).

  • Expanded eligibility: The concession will now apply to all off-the-plan dwellings in strata schemes or community title (building) schemes, including townhouses and villas—not just multi-tiered apartment buildings. However, it does not apply to dwellings built on a survey-strata plan.

Implementation and Refunds

These changes require legislative amendments, with implementation expected by early June 2025, subject to the Parliamentary process and system updates at RevenueWA. Transactions entered into on or after 21 March 2025 that settle before the system changes take effect may be eligible for a refund of duty after settlement.

For more details on the first home owner rate of duty and off-the-plan concessions, visit RevenueWA’s website or consult a licensed conveyancer for expert advice.

 

** The information provided in this blog is for general informational purposes only and does not constitute professional advice. While we strive to ensure accuracy, we encourage readers to conduct their own research and due diligence before making any decisions based on the content or sources mentioned. Porter Matthews Metro does not assume any liability for errors, omissions, or reliance on the information provided.**