In a significant move to address housing needs and support lifestyle changes, the Western Australian government has announced an expansion of stamp duty concessions for off-the-plan and under-construction properties. This initiative, unveiled by Deputy Premier and Treasurer Rita Saffioti, is designed to facilitate downsizing and promote medium to high-density living options across the state.
Key Changes to the Concession Scheme
The off-the-plan duty concession, a critical tool for enabling downsizers and those seeking compact living arrangements, has been extended for an additional two years, now set to expire on June 30, 2028. Importantly, eligibility has been broadened to include survey-strata dwellings, making the benefit available to purchasers of new apartments, townhomes, villas, duplexes, triplexes, and other multi-unit developments.
Ms Saffioti also detailed adjustments to the price thresholds, which have been increased to better reflect current market conditions. The new thresholds are set at $800,000 and $900,000, up from the previous $750,000 and $850,000, respectively.
Financial Benefits for Buyers
Under the revised scheme, buyers of off-the-plan dwellings priced up to $800,000 will pay no stamp duty, with the concession tapering to 50 percent for properties above $900,000. For properties purchased while under construction, a 75 percent concession applies up to $800,000, reducing to 37.5 percent above $900,000. These measures aim to reduce financial barriers, particularly for downsizers and smaller households looking to transition to more manageable living spaces without incurring significant additional costs.
Supporting Housing Supply and Industry
The expansion is not only beneficial for buyers but also supports the construction industry. By encouraging presales and early-stage purchases, the concession helps developers overcome financial challenges associated with high materials, labor, and development costs. This is especially crucial for affordable housing projects, where profitability margins are often tight.
Grant Shepherd, President of the Urban Development Institute of Australia (UDIA) WA, welcomed the announcement, noting that the institute had advocated for such changes in its 2026-27 Pre-Budget Submission. He emphasized that facilitating downsizing unlocks larger homes for families in need while promoting the delivery of more medium and high-density housing projects.
Broader Implications for the Community
With an ageing population, the ability to downsize within local communities or convenient areas is increasingly important. This policy aims to provide more housing choices, allowing residents to maintain lifestyle benefits without the burden of stamp duty. Industry stakeholders have expressed optimism about the initiative and anticipate further measures in the upcoming State Budget in May, which could further enhance housing affordability and supply in Western Australia.
