Precise Property Settlements

Updates for First Home Buyers & Investors (WA) for FHOG/Transfer duty exemption and negative gearing updates

Transfer Duty (Stamp Duty) Updates:

(For contracts signed on or after 7 May 2026 – expected implementation around 28 July 2026)

No transfer duty on established homes up to $600,000
Reduced transfer duty for homes up to $800,000
No transfer duty on land up to $450,000
Reduced transfer duty for land up to $550,000

First Home Owner Grant (FHOG) Changes:

Increased caps:

Up to $800,000 (previously $750,000) for homes south of the 26th parallel
Up to $1,000,000 for homes north of the 26th parallel

FHOG caps are now separate from duty concessions, meaning eligible first home buyers can still access stamp duty relief even if the purchase price exceeds the FHOG cap.

Negative Gearing Update:

Properties owned before 7:30pm AEST, 12 May 2026 are fully exempt
Properties already under contract (even if not settled) will retain negative gearing benefits into the future
This ensures investors who have already made decisions under the previous rules will not be impacted.

Further information:
https://budget.gov.au/content/factsheets/download/tax-explainers-negative-gearing-capital-gains-tax.pdf

https://www.wa.gov.au/government/announcements/2026-27-housing-taxation-package

Please contact our team at Precise Property Settlement to enquire further and find out how these changes could benefit you:

0412 780 093 / 08 6289 0690

[email protected]

🏡 2026–27 WA Housing Taxation Package Announced

The WA State Government has announced major housing tax reforms designed to support first home buyers, increase housing supply, and improve affordability across Western Australia.

📅 Key changes apply to transactions entered into on or after 7 May 2026 (subject to legislation passing Parliament).

What’s Changing?

Higher Stamp Duty Exemptions for First Home Buyers

The First Home Owner Rate of Duty (FHOR) thresholds will increase:

Established & Newly Built Homes:

No stamp duty on homes valued up to $600,000 (previously $500,000)
Reduced duty available for homes valued up to $800,000 (previously $700,000)

Vacant Land

No stamp duty on land valued up to $450,000 (previously $350,000)
Reduced duty available for land valued up to $550,000 (previously $450,000)

First Home Owner Grant (FHOG) Cap Increased

FHOG cap for homes south of the 26th parallel increased to $800,000 to reflect rising construction costs.

More Flexibility for First Home Buyers

Buyers may still qualify for stamp duty concessions even if the property value exceeds the FHOG cap.

New Foreign Buyer Duty Exemption

New exemption for eligible “build-to-sell” developments that increase housing supply.

Off-the-Plan Duty Concession Extended

Announced on 12 March 2026:
Extended until 30 June 2028
Increased value thresholds
Expanded eligibility to include survey-strata and community title developments

Expected commencement date: 28 July 2026

Eligible transactions entered into between the announcement date and commencement date may initially be assessed under current rules, with reassessments and refunds issued after implementation.

https://www.wa.gov.au/government/announcements/2026-27-housing-taxation-package



2026-27 Housing Taxation Package The State Government has announced budget measures in relation to the first home owner grant, first home owner rate of duty, and foreign buyers duty and the off-the-plan duty concession.