The WA Liberals will slash stamp duty for first home buyers to assist aspiring homeowners to break into the property market and make entry-level housing more affordable for Western Australians, says Steve Martin, Shadow Housing Minister. Under the changes, the First Homeowner Rate of Duty (stamp duty) exemption threshold will be raised from $450,000 to $550,000, and the concession threshold will be moved from $600,000 to $700,000. This means first home buyers will save up to $15,010 in reduced stamp duty for purchases of homes under $700,000 and pay no stamp duty at all on homes worth $550,000 or less.

“We want to make sure Western Australians get a fair shot at entering the property market and starting their home ownership journey – that’s why these changes are so important.” Mr Martin said.

“For the first time, Western Australians purchasing their first homes between $600,000 and $700,000 in value will see some stamp duty relief. “With the REIWA median house price skyrocketing from $520,000 in 2021 to $705,000 today, and expected to rise further, first home buyers are having to pay more, and borrow more, to get into their first homes.

“This measure will provide welcome relief to first home buyers after the abject failure of the Cook Labor Government to ensure there is sufficient housing supply.

The Cook Labor Government had a chance to fix this just a few months ago in their State Budget, according to Mr Martin.

“Despite a $987 million increase in forecast in total transfer duty revenue, they opted for a very small threshold change while Western Australians struggling for a deposit are paying increasingly high rents,” said Mr Martin

Shadow Treasurer Neil Thomson said the policy would help more Western Australians doing it tough under a high-taxing Labor Government.

“Our state is led by the highest taxing Treasurer on record who has been the beneficiary of obscene tax increases which are being derived from Cook Labor Government’s failure to maintain housing supplies and the impact this is having on house prices in Western Australia,” said Mr Thomson.

“It’s only fair we return some of those taxes to first homeowners who are struggling to save for a deposit”.

“Treasurer Saffioti’s reckless approach on her big spending vanity projects has played a big part in overheating the construction sector and this has led to a massive windfall in stamp duty revenues at the expense of hardworking West Australians.

"Cutting taxes is in our DNA – this is a tax break for first home buyers who have been left behind as property prices climb.”

Libby Mettam, WA Liberal Leader, said the policy demonstrated the Liberal party’s commitment to addressing WA’s housing shortage and the rising cost of living.

“This will provide cost-of-living relief at a time of escalating housing prices, when many Western Australians, particularly young Western Australians, are feeling home ownership is growing increasingly out of reach,” Ms Mettam said.

“This policy will ensure first home buyers are given a leg up to break into the housing market.

“The WA Liberals are committed to providing practical, effective solutions to ease cost-of-living pressures and ensure the next generation of Western Australians can secure their future.”

The changes are expected to benefit at least 5,000 first home buyers per year, at an estimated cost of $240 million in forgone transfer duty revenue to the State over the forward estimates.