Changes to property-related taxes and concessions can have a significant impact on the cost of buying or selling real estate. In Western Australia, 2026 has brought several important changes designed to improve housing affordability and encourage new housing supply.
From increased stamp duty relief for first home buyers to changes affecting off-the-plan purchases and tax requirements when selling property, understanding the current rules can help buyers and sellers make better-informed decisions.
Here are some of the key changes and tax considerations affecting the WA property market in 2026.
One of the biggest changes for WA buyers in 2026 is the expansion of the First Home Owner Rate of Duty.
For eligible transactions entered into on or after 7 May 2026, first home buyers purchasing a new or established home can now:
The thresholds for vacant land have also increased. Eligible first home buyers now pay:
These higher thresholds are particularly relevant in Perth, where rising property values have previously pushed some first home buyers beyond the available concession limits.
The WA Government has also increased the property value cap associated with the First Home Owner Grant (FHOG).
For eligible transactions south of the 26th parallel, which includes Perth, the cap increased from $750,000 to $800,000 for transactions commencing on or after 7 May 2026.
The FHOG itself remains $10,000 and generally applies to eligible buyers purchasing or building a new home, rather than an established property.
Importantly, the Government has also removed the previous link between the FHOG property value cap and eligibility for the First Home Owner Rate of Duty. This means eligible first home buyers may still qualify for a stamp duty concession where the relevant duty requirements are met, even if they do not qualify for the grant because of its property value rules.
Buyers considering apartments and other eligible off-the-plan properties may also benefit from changes introduced in 2026.
Western Australia’s off-the-plan duty concession has been extended until 30 June 2028, with increased value thresholds and expanded eligibility.
The concession has also been broadened to include eligible new dwellings purchased off-the-plan in certain survey-strata and community titles land schemes, in addition to existing eligible developments.
For buyers considering a new apartment, townhouse or other qualifying development, this can reduce the upfront transfer duty associated with the purchase.
Because the amount of the concession depends on factors including the property’s value, contract date and stage of construction, buyers should confirm their individual eligibility before purchasing.
For property investors, Australia’s existing rental property tax rules continue to make record keeping and understanding deductible expenses particularly important.
Owners of properties that are rented or genuinely available for rent may be able to claim deductions for eligible expenses such as:
However, not every property expense can be claimed immediately. Renovations, improvements and other capital expenses are generally treated differently from ordinary repairs and may need to be claimed over time or considered when calculating the property’s cost base.
Investors should keep detailed records and seek professional tax advice when determining what can be claimed.
Sellers should also consider the potential Capital Gains Tax (CGT) implications before putting a property on the market.
A home that has been the owner’s main residence for the entire ownership period and meets the relevant ATO requirements will generally qualify for the main residence CGT exemption.
Different rules can apply if the property has been:
There is also a commonly referred to six-year rule, which may allow an eligible owner to continue treating a former home as their main residence for CGT purposes for up to six years while it is being rented, provided the relevant conditions are met.
CGT circumstances can become complex quickly, particularly where a property has changed between being a home and an investment, so sellers should consider obtaining tax advice before the sale.
Another important consideration for sellers is the Foreign Resident Capital Gains Withholding (FRCGW) regime.
Since 1 January 2025, the withholding rate has increased to 15% and the previous $750,000 property value threshold has been removed.
This means the rules can now apply to Australian property sales at any value.
For Australian resident sellers, this does not mean they automatically pay an additional 15% tax. Instead, the seller should obtain an ATO clearance certificate and provide it to the purchaser by settlement to demonstrate that withholding is not required.
Without a valid clearance certificate, the purchaser may generally be required to withhold 15% of the purchase price and pay it to the ATO.
The ATO advises that clearance certificate applications can take up to 28 days to process, although certificates are valid for 12 months once issued. Sellers should therefore consider organising their certificate early rather than waiting until settlement approaches.
Foreign purchasers of residential property in Western Australia can also face additional costs.
WA currently imposes an additional 7% foreign transfer duty on certain acquisitions of residential property by foreign persons or entities, on top of the ordinary transfer duty that may apply.
The WA Government has also announced changes to foreign buyer duty exemptions aimed at encouraging new housing construction, including a proposed build-to-sell exemption for qualifying developments that add new dwellings to WA’s housing supply.
As these measures involve specific eligibility requirements and legislative implementation, foreign purchasers and developers should obtain current advice before entering into a transaction.
For many buyers, particularly first home buyers, the 2026 changes provide greater flexibility.
Higher stamp duty thresholds mean more properties can potentially be purchased without paying transfer duty, or with a reduced amount payable. The increase in the FHOG cap and expanded off-the-plan concessions may also make new-build options more attractive.
However, tax concessions should be considered alongside the property’s price, location, finance costs and long-term suitability rather than being the sole reason for purchasing.
For sellers, preparation remains important.
Understanding whether CGT could apply, organising an ATO clearance certificate early and considering how current buyer incentives may affect demand for your property can all form part of a well-planned sales strategy.
The expansion of first home buyer concessions may also increase the number of eligible buyers looking within certain price ranges, which could be relevant when determining how a property is positioned and marketed.
Tax rules and government incentives can influence both the cost of purchasing property and the final outcome when selling.
With significant changes now in effect across Western Australia, buyers and sellers should understand which concessions and obligations may apply to them before entering into a transaction.
If you’re considering buying, selling or investing in Perth property, Starlight Property Group can help you understand the current market and make an informed property decision.
Contact our team to discuss your property plans and how today’s market conditions may affect your next move.
Disclaimer: This article provides general information only and should not be considered financial, taxation or legal advice. Tax outcomes and eligibility for government concessions depend on individual circumstances. Buyers, sellers and investors should seek advice from a qualified accountant, tax adviser, settlement agent or other appropriate professional before making financial or property decisions.
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