It’s time to increase the stamp duty thresholds for first home buyers 

As seen in The West Real Estate

Following the state election in March 2025, the Cook Government increased the thresholds for the first home buyer stamp duty concessions. The lower threshold, below which no duty is paid, was increased from $450,000 to $500,000. The upper threshold, below which a concessional rate is applied, was increased from $600,000 to $700,000. While this was a welcome change at the time, strong price growth since then has rendered these thresholds obsolete.

At the end of February 2026, the Perth median house sale price was $870,000, 13.7 per cent higher than a year ago. The lower quartile was $730,000 (25 per cent of house sales are below this figure), $30,000 higher than the upper stamp duty threshold. The median unit sale price rose 20.4 per cent to $620,000 over the same period.

A review of sales data shows, in the year to February 2026, only 5.9 per cent of dwelling sales in Perth were below the $500,000 stamp duty threshold and only 12.7 per cent of these were houses. In the same period, just 28.5 per cent of all dwellings sold in Perth were below the $700,000 threshold, with 49.3 per cent of these houses.

The data suggests very few first home buyers will have been able to claim the full stamp duty concession, with a limited number being able to claim a partial concession.

Strong price growth is forecast for the Perth property market again this year.

In a 2025 Housing Issues Survey conducted on reiwa.com, 63 per cent of respondents said stamp duty was a significant barrier to home ownership.

REIWA’s 2026-27 Pre-budget Submission recommended the first home owner stamp duty thresholds be increased to make them accessible to as many first home buyers as possible.

We have also consistently advocated for the thresholds to be linked to REIWA data and reviewed regularly to ensure they remain relevant to market conditions. Keystart have embedded REIWA data in their processes to ensure their settings move with the market.

We believe the lower threshold, below which no duty is payable, should be pegged to REIWA’s annual lower quartile, which is currently $730,000 for houses. It is appropriate to target the most support at the bottom 25 per cent of the market, as this is where many first home buyers would be aiming to purchase a home. The upper threshold, above which no concession is payable, should be pegged to REIWA’s annual median, which is currently $870,000.

The WA government is on track to receive over a $1 billion windfall in stamp duty revenue this financial year. That money would be better off in the pockets of first home buyers, helping them enter the property market. It’s time to increase the first home buyer stamp duty thresholds.

Suzanne Brown
REIWA President