Stamp duty has always been one of the largest upfront costs of buying a home in Western Australia, and for first home buyers it could be the difference between settling this year or saving for another two. The good news is that the rules have shifted firmly in buyers’ favour. In its 2026-27 State Budget, the WA Government announced a fresh round of WA stamp duty relief that took effect from 7 May 2026, raising the thresholds at which first home buyers pay no duty at all. If you are planning a purchase in Perth or regional WA, here is what the changes actually mean for your budget.
What changed on 7 May 2026
The headline change is simple. First home buyers now pay no stamp duty on a new or established home valued up to $600,000, up from the previous $500,000 cap. A concessional, reduced rate then applies to homes valued between $600,000 and $800,000, where the old ceiling sat at $700,000.
For buyers planning to build, the vacant land thresholds moved too. The full exemption on vacant land rose from $350,000 to $450,000, with a concessional rate applying up to $550,000. This was delivered as part of a $297 million housing tax package, described by the State Government as a third round of relief aimed at improving affordability and encouraging more housing supply across the state.
In practical terms, the State Government estimates the changes can save buyers up to $22,515 on a new or established home and up to $25,390 on a land purchase. That is real money back in your pocket, and for many buyers it lands directly on the deposit side of the ledger.
The First Home Owner Grant also improved
The reforms went beyond duty. The property value cap for the $10,000 First Home Owner Grant (FHOG) increased from $750,000 to $800,000 for homes south of the 26th parallel. Just as importantly, the grant has been delinked from stamp duty eligibility. Previously the two were tied together, which meant losing access to the duty concession if your purchase price crept above the grant cap. Now an eligible first home buyer can still access a duty concession even where the transaction value sits above the FHOG cap. It is a small structural change that quietly widens the pool of buyers who benefit.
What the savings look like in real dollars
The cleanest way to understand the new rules is to look at where your purchase price sits.
If you buy an established or new home at or below $600,000, your stamp duty bill is zero. On a property at that level the saving compared with a standard buyer can run to roughly $22,000, which is a meaningful chunk of an offer in Perth’s current market.
Buy between $600,000 and $800,000 and you fall into the concessional band, where you pay a reduced rate rather than nothing, but still far less than the full schedule. Above $800,000 the general rate applies, and the relief no longer reaches you.
Because the duty is calculated on a tiered, sliding scale, the exact figure depends on your price, whether the home is established or newly built, and your eligibility. Before you start making offers, it is worth running your specific numbers through our stamp duty calculator so you know your true settlement cost rather than a rough guess.
Who qualifies for the first home buyer rate
The duty concession is aimed at genuine first home buyers, so the usual conditions apply. Broadly, you need to be buying your first home (or in some cases not have owned residential property in WA before), you must be buying it to live in as your principal place of residence rather than as an investment, and you need to meet the residency and occupancy requirements set by RevenueWA. The relief covers established homes, newly built homes, and vacant land bought with the intention to build.
If you are buying to live in the home rather than rent it out, you are likely on the right track. If you are weighing up an investment purchase instead, the first home buyer rate will not apply, and our team can talk you through the numbers on investment property loans and how the duty differs.
How and when to claim it
This is the part buyers most often get wrong. To access the exemption or concession you generally need to apply to RevenueWA at or before settlement, with the documentation that proves your eligibility. If you settle first and apply afterwards, you may be assessed at the full rate and then have to seek a reassessment and refund later. That can tie up thousands of dollars at the exact moment your cash is stretched thinnest.
The lesson is to get your eligibility confirmed early, ideally before you are deep into a contract, so the concession is built into your settlement figures from the start. Mapping out every upfront cost, including duty, lender fees, and conveyancing, is easiest with our property buying cost calculator, which gives you a fuller picture than duty alone.
Building or buying off the plan
If your plan is to build, the vacant land thresholds above are the ones to watch, and the path is slightly different. First home buyers purchasing land to build often pay duty upfront and then become eligible for a refund once the home is built and the grant is issued. WA also runs a separate off-the-plan duty concession for eligible strata and community title dwellings, which has been expanded and extended in recent years. The rules here change periodically, so confirm the current position with RevenueWA or your broker before committing. If a new build is on your radar, it pairs naturally with our residential construction loans, which are structured around progress payments rather than a single lump sum.
Stamp duty relief plus the 5% deposit scheme
Here is where the picture gets genuinely exciting for first home buyers. The WA duty changes stack on top of the federal Australian Government 5% Deposit Scheme, which let us eligible first home buyers purchase with as little as a 5 per cent deposit and no Lenders Mortgage Insurance. Combine a smaller deposit, no LMI, no stamp duty up to $600,000, and a $10,000 grant on an eligible new home, and the total upfront saving can stretch well beyond $50,000. If saving the deposit has been your sticking point, our low deposit home loans page explains how the two measures work together.
How a broker helps you make the most of it
The thresholds are clear, but the application timing, eligibility checks, and lender choice are where deals get won or lost. As a Perth mortgage brokerage with more than 20 years in the industry, we help you confirm your duty position before you make an offer, line up a lender that recognises your eligibility, and keep the paperwork moving so the concession is applied at settlement rather than chased afterwards. Because we are paid by the lender, there is no fee to you for that guidance.
Ready to work out your real cost?
Knowing your actual stamp duty bill changes how much you can offer and which suburbs are within reach. The fastest way to get clarity is to talk it through with someone who does this every day. Call our team on 0489 082 257 or book a free appointment and we will map out your duty, your grant eligibility, and your deposit options in one sitting.
Frequently Asked Questions
Do first home buyers pay any stamp duty in WA now?
Not on an eligible new or established home valued at or below $600,000. From 7 May 2026, those purchases attract no transfer duty. Between $600,000 and $800,000, a reduced concessional rate applies, while properties above $800,000 are charged at the general transfer duty rate.
What is the saving compared with before the change?
The full exemption threshold increased from $500,000 to $600,000, while the concession ceiling rose from $700,000 to $800,000. Eligible first home buyers can save up to $22,515 on a home purchase and up to $25,390 on vacant land.
Can I still get the $10,000 First Home Owner Grant?
Yes. If you are buying or building an eligible new home, you may still qualify for the $10,000 First Home Owner Grant. The grant cap increased to $800,000 for homes south of the 26th parallel, and eligibility for the grant is now separate from stamp duty concessions.
When do I need to apply for the exemption?
Applications are generally completed at or before settlement through RevenueWA. Applying after settlement may result in transfer duty being charged initially, requiring you to apply for a refund later, so it is best to confirm eligibility as early as possible.
Does the duty relief apply to investment properties?
No. First home buyer stamp duty exemptions and concessions are only available for buyers purchasing a property to live in as their principal place of residence. Investment properties are not eligible.
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We’re Here to Help
Contact our team if you have questions about home loans, refinance/">refinancing, or other lending options. Call us, book a time to speak, or send us an email and we will get back to you.
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info@centrallendingsolutions.com.au
Central Lending Solutions is a Perth-based mortgage brokerage with over 20 years of experience in the finance industry. Our team helps clients compare lenders and navigate the home loan process from enquiry through to approval.
