The Western Australian Parliament has approved a bill to increase duty concessions for first-time homeowners.
The Duties Amendment (First Home Owner Concessions) Bill 2024 amends the state’s Duties Act 2008 so that:
- Properties valued up to AUD 450,000* (previously AUD 430,000) are exempt from transfer duty;
- Properties valued between AUD 450,001 and AUD 600,000 (previously AUD 430,001 – AUD 530,000) receive a duty concession.
This means first-home buyers purchasing an AUD 450,000 home will pay no stamp duty, providing a total saving of AUD 15,390. A first-home buyer purchasing an AUD 530,000 home will receive the maximum additional saving of AUD 7,180.
According to a related government release, these are announced as part of the 2024-25 State Budget and the changes will apply to agreements entered into from 9 May 2024.
The reforms are expected to benefit almost 5,000 first-home buyers each year, costing around AUD 20 million annually or AUD 82 million over the next four years.
The stamp duty concession for homes is complementary to the State Government’s First Home Owner Grant, which provides an AUD 10,000 payment to first home buyers who buy or are building a new residential property as well as transfer duty exemptions for first home buyers on vacant land valued up to AUD 300,000 and concessions for vacant land valued up to AUD 400,000.
Application of the amendments
Under the Duties Act, a concessional rate of duty applies to first homeowner concessional transactions. A first home owner concessional transaction is a transfer of, or an agreement to transfer, dutiable property where:
- The unencumbered value of the property does not exceed the relevant dutiable value threshold; and;
- The transferee qualifies for the first home owner grant under the First Home Owner Grant Act 2000, or they would have qualified for the grant except that the transaction was for the purchase of an established home or there was no consideration for the transaction.
