Stamp duty and downsizing have recently captured headlines, particularly as South Australia approaches its state election. The Australian Labor Party (South Australian Branch) has pledged to eliminate stamp duty for downsizers purchasing newly built or off-the-plan properties valued up to $2 million. Meanwhile, the Liberal Party of Australia (SA Division) is proposing a $15,000 stamp duty concession for South Australians over 55 years old who move into smaller homes priced under $1.2 million.
REIWA Welcomes Focus on Downsizing Costs
REIWA has expressed strong support for the attention these proposals have drawn to the financial burdens associated with downsizing. While several other Australian states already offer concessions to facilitate this process, Western Australia currently lacks such measures. REIWA has been a vocal advocate for a stamp duty concession for downsizers for many years and is urging the State Government to take decisive action.
Demographic Shifts and Financial Barriers
According to the Bankwest Curtin Economics Centre's Every Person Counts report, the number of people in their 70s has surged by 62 percent over the past decade. Many of these individuals reside in large family homes that no longer meet their needs, yet downsizing often proves financially unviable. A 2025 reiwa.com Housing Issues Survey revealed that 63 percent of respondents identified stamp duty as a significant obstacle to downsizing. For potential downsizers, the prospect of paying tens of thousands of dollars in upfront transaction costs serves as a clear deterrent, leading many to remain in their current homes.
Unexpected Financial Realities of Downsizing
Downsizing does not always yield the expected financial windfall. Due to robust price growth in recent years, downsizers may secure a premium price for their current home but face similarly high costs—including substantial stamp duty—for their next property. Additionally, as many downsizers express a preference for modern homes, the price difference between selling their existing property and purchasing a new one is often minimal. This financial reality further discourages movement, reinforcing the decision to stay put.
REIWA's Proposal for Western Australia
As Western Australia prepares for its 2026-27 State Budget, REIWA is advocating for a $10,000 stamp duty concession for eligible downsizers. The organization emphasizes that this measure would not aim to stimulate the property market but rather alleviate the financial strain on seniors, especially amid escalating living costs. This concession would be particularly beneficial for WA seniors seeking to downsize.
Broader Benefits of Downsizing Concessions
Implementing a stamp duty concession could foster much-needed mobility within the WA property market, potentially freeing up large family homes that are in high demand. Furthermore, it would provide financial advantages to the State Government by generating stamp duty revenue from two transactions: the downsizer's purchase of a new property and the subsequent sale of their existing home. If downsizers choose to remain in place, the government misses out on this revenue entirely.
In summary, the spotlight on downsizing concessions highlights critical issues in housing affordability and demographic trends. REIWA's call for action in Western Australia underscores the need for policy reforms to support seniors and enhance market dynamics.
