WA Budget Changes for First Home Owners

The 2026 State Budget has sought to increase access to home ownership and improve housing affordability by reducing upfront purchase costs. The reforms are intended to better align concessional thresholds with current market conditions, encourage new housing support and support activity in the construction sector. The changes may also assist in easing pressure on the rental market by helping more buyers transition into home ownership.

Increased first home owner thresholds

For transactions entered into on or after 7 May 2026, the First Home Owner Grant (FHOG) and First Home Owner Rate (FHOR) of duty exemptions and and concessional duty thresholds for newly built, established homes and vacant land will increase.

Category	Increase	Previous
FHOR of Duty - homes (established or newly built)	No duty up to $600,000	$500,000
	Concessional duty up to $800,000	$700,000
FHOR of Duty - vacant land	No duty up to $450,000	$350,000
	Concessional duty up to $550,000	$450,000
FHOG Cap - south of 26th parallel	Increased to $800,000	$750,000

Decoupling

Eligibility for the FHOR of duty concessions will no longer depend upon eligibility for the FHOG. This means eligible first home buyers may still qualify for a transfer duty concession even if the value of the transaction exceeds the FHOG cap.

Commencement delayed

Although measures have been announced, they cannot take effect until enabling legislation is passed by Parliament and RevenueWA completes the required system updates. The current estimated commencement date is 28 July 2026.

What happens to transactions entered into before commencement?

Transactions entered into between 7 May 2026 and the commencement date will initially be assessed under the existing duty rates and thresholds.  Eligible transactions may then be reassessed and refunds issued where the new concessions apply.

Off-the-plan duty concession expanded

These latest changes build upon off-the-plan duty concessions announced 12 March 2026 (see our article: https://www.randalllawyers.com.au/post/upcoming-changes-to-the-wa-off-the-plan-duty-concession), which:

• extended the off-the-plan duty concession until 30 June 2028;

• increased the value thresholds; and

• expanded eligible transactions to include new dwellings purchased off-the-plan in survey-strata and community title schemes.