First Homeowner Rate of Duty and Off-the-Plan Duty Concession

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On 24 March 2025, the State Government announced changes to the value of vacant land and home eligible for the first home owners concessional rate of duty. Changes to extend and expand the off-the-plan duty concession were also announced. These changes apply to transactions entered into from 21 March 2025.

First home owner rates of duty

Effective from 21 March 2025, the following increased transfer duty exemptions and concessions for first home buyers will apply:

    • for house purchases in Perth and Peel only, the transfer duty exemption threshold will increase from $450,000 to $500,000 and the concession threshold will increase from $600,000 to $700,000;
    • for house purchases in regions outside Perth and Peel, the transfer duty exemption threshold will increase from $450,000 to $500,000 and the concession threshold will increase from $600,000 to $750,000; and
    • for vacant land purchases Statewide, the transfer duty exemption threshold will increase from $300,000 to $350,000 and the stamp duty concession threshold will increase from $400,000 to $450,000.

Off-the-plan concession

The announced changes to the off-the-plan duty concession will:

    • extend the last date for the concession until 30 June 2026 (previously due to expire on 30 June 2025).
    • increase the thresholds for pre-construction contracts so that:
      • no duty is payable on properties valued up to $750,000 (previously $650,000)
      • the 100% duty concession reduces to 50% for properties valued between $750,000 and $850,000 (previously $650,000 and $750,000)
      • a 50% duty concession applies to properties valued over $850,000 (previously $750,000).
    • increase the thresholds for under construction contracts so that:
      • a 75% duty concession applies to properties valued up to $750,000 (previously $650,000)
      • the 75% duty concession reduces to 37.5% for properties valued between $750,000 and $850,000 (previously $650,000 and $750,000)
      • a 37.5% duty concession applies to properties valued over $850,000 (previously $750,000).
    • expand the concession to off-the-plan purchases of all strata scheme or community title (building) scheme  dwellings including townhouses and villas, not just multi-tiered schemes.  This does not apply to the construction of a dwelling on a survey-strata plan. Strata scheme has the meaning given in section 9 of the Strata Titles Act 1985 and community titles (building) scheme has the meaning given in section 11(7) of the Community Titles Act 2018.

If you would like to find out more or discuss your individual requirements, please contact our property and settlements team.

TWO YEAR BAN ON FOREIGN PERSONS BUYING ESTABLISHED HOMES FROM 1 APRIL 2025

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On 16 February the Australian Government announced that from 1 April 2025, a ban will be in place for an initial period of 2 years (1 April 2025 to 31 March 2027), preventing foreign persons from applying to buy established dwellings in Australia, unless an exception applies.

The limited exceptions will include investments that significantly increase housing supply or support the availability of housing supply, and for the Pacific Australia Labour Mobility (PALM) scheme.

Other existing exceptions remain in place, such as for purchases by:

    • permanent residents
    • New Zealand citizens
    • spouses of Australian citizens, permanent residents or New Zealand citizens (when purchased as joint tenants).

A review will be undertaken to determine if the ban should be extended beyond 31 March 2027.

The Government also announced that it would increase funding to the Australian Taxation Office’s (ATO) foreign investment compliance team to enforce the ban and enhance screening of foreign investment proposals relating to residential property.

Further to the ban on preventing foreign persons from apply to buy established dwellings in Australia, the Government announced that it would crack down on land banking by foreign investors. The Government intends to do this by targeting foreign investors who have already received approval to acquire established dwellings but have not taken steps to comply with the development conditions imposed as part of their FIRB approval.

Australian citizens seeking to buy and hold property for foreign persons should reconsider these types of arrangements as they are inherently risky.

Most states and territories in Australia require now require buyers to make declarations about whether they are buying the land for their own purposes or on trust for another person.

A buyer who makes a false declaration and does not disclose they are acquiring and holding a property on trust for a foreign person may commit an offence.

If you would like to find out more or discuss your individual requirements about buying land in Australia, please contact our property and settlements team.