WA housing tax changes take effect, opening refunds for eligible buyers

Western Australia has put its 2026–27 housing tax package into operation, clearing the way for eligible home purchases to be reassessed under higher first-home buyer thresholds and expanded off-the-plan concessions.

RevenueWA confirmed on Friday that the announced changes have now been applied. Importantly, the measures use the original government announcement dates rather than 23 October as their starting point.

That means some buyers whose transactions were assessed under the previous rules may be able to receive a refund for duty they paid above the amount now required.

The package covers first-home buyer duty, the First Home Owner Grant value cap, off-the-plan purchases and exemptions intended to encourage additional housing construction.

Higher duty thresholds for first-home buyers

For eligible purchases entered into on or after 7 May 2026, no transfer duty is payable on a new or established home valued at up to $600,000. The previous full-exemption threshold was $500,000.

A concessional rate now applies to eligible homes valued above $600,000 and up to $800,000. RevenueWA’s circular says duty in this band is calculated at $16.15 for every $100, or part of $100, above $600,000.

The vacant-land thresholds have also moved. Eligible first-home buyers pay no duty on land valued at up to $450,000, while a concession applies above that level and up to $550,000. The concessional rate is $20.14 for every $100, or part of $100, above $450,000.

The amendments also remove the previous distinction between established homes inside and outside the Perth metropolitan and Peel regions.

Grant cap rises for new homes

The value cap for the First Home Owner Grant has increased from $750,000 to $800,000 for eligible homes south of the 26th parallel. The change applies to qualifying transactions commencing, or owner-builder construction beginning, on or after 7 May 2026.

Eligibility for the first-home owner rate of duty has also been separated from the grant’s value caps. This matters where the combined value of a buyer’s land and completed home exceeds the grant cap but the land purchase or established-home transaction remains within the relevant duty threshold.

Buyers must still satisfy the scheme’s other eligibility rules. The higher price thresholds do not make every purchase below those figures automatically exempt.

Off-the-plan concession widened

Changes announced on 12 March 2026 extend WA’s off-the-plan duty concession until 30 June 2028 and broaden the types of developments that can qualify.

The concession now includes eligible newly constructed dwellings bought through survey-strata and community titles land schemes, not only strata and community titles building schemes.

For an eligible pre-construction agreement worth $800,000 or less, the concession can cover 100 per cent of the ordinary duty, capped at $50,000. The percentage reduces for purchases between $800,000 and $900,000, while a base concession continues for higher-value purchases.

For an eligible agreement signed after construction has started but before it is completed, the concession can cover 75 per cent of duty for a purchase of $800,000 or less, also subject to the $50,000 cap. Lower percentages apply as values rise.

The rules are technical, particularly for house-and-land arrangements and the point at which development is considered to have commenced. Buyers should confirm eligibility before treating the concession as part of their available deposit or settlement funds.

Reassessments and refunds

RevenueWA says transactions assessed under the former rates or criteria can be reassessed where they qualify under the new legislation. Any difference in duty paid can then be refunded.

Buyers who exchanged contracts from 12 March for an off-the-plan home, or from 7 May for measures in the state budget package, should check their assessment with their settlement agent, conveyancer or RevenueWA.

The practical benefit may depend on the contract date, property value, construction stage and whether the purchaser meets the first-home buyer or off-the-plan eligibility conditions.

What it means for you

• Eligible first-home buyers can now receive a full duty exemption on homes worth up to $600,000.
• Purchases already assessed may qualify for reassessment and a refund if the contract falls after the relevant announcement date.
• Off-the-plan buyers should confirm the scheme type and construction stage before relying on a concession.
• Ask your settlement agent to check the updated rules rather than assuming an earlier duty assessment is final.