2024-25 State Budget offers welcome support for first home buyers

REIWA CEO Cath Hart welcomed measures to support housing supply announced in the Cook Government’s first budget today, especially increased thresholds for the First Home Owner Transfer Duty Concession.

“While there is no silver bullet to addressing the challenges WA’s housing market faces, we welcome the fact the Government has opted for incentives to boost housing supply, rather than punitive measures such as new taxes as we’ve seen in other states,” Ms Hart said.

“The fundamentals of the WA economy remain strong with the Treasurer today forecasting the state is on track to reach 3 million people next financial year – this will drive ongoing demand for housing and see house prices continue to climb.

“We’re particularly pleased to see changes to the property price thresholds for first home buyer stamp duty exemptions to better reflect the current market conditions which was a proposal in REIWA’s Budget submission.

“WA has seen strong property price growth over recent years which we expect will continue – this has however meant that first home buyers are not only having to pay more, but that they haven’t been able to access the stamp duty concessions which exempted purchasers from paying stamp duty on properties worth $430,000 or less, with tiered concessions on properties up to $530,000.

“This is the first time the thresholds have been amended since July 2014 and the median house price in Perth is now around $630,000 so lifting the thresholds will be a welcome change to support first home buyers in WA.”

Under the changes, first home buyers will now pay no transfer duty on homes valued up to $450,000, a total saving of $15,390. The threshold was previously $430,000.

They will pay a concessional rate on purchases over $450,000 to $600,000. Previously the concession ceased at $530,000.

The changes will apply to agreements entered into from today, 9 May 2024 and are expected to benefit up to 5,000 first home buyers each year.

The thresholds for the purchases of vacant land remain unchanged.

More details : https://reiwa.com.au/news/2024-25-state-budget-offers-welcome-support-for-first-home-buyers-reiwa/?utm_source=sfmc&utm_medium=email&utm_campaign=240509_reiwa.com_newsletter+%23466&utm_term=Hero+Title&sfmc_id=2811820