Under the new budget, the threshold for stamp duty exemptions on new and established homes has been raised from $500,000 to $600,000. Properties valued between $600,000 and $800,000 will now benefit from concessional rates, making homeownership more accessible to a broader segment of the population. Additionally, the property cap for the $10,000 First Home Owner Grant has increased from $750,000 to $800,000, further extending support to first-time buyers.
Vacant land purchasers are also set to benefit, with the stamp duty exemption threshold increasing from $350,000 to $450,000. Concessional rates will apply to land valued up to $550,000, encouraging the development of new homes and addressing housing supply issues.
Beyond tax reforms, the budget allocates $375 million towards affordable housing projects. This funding aims to construct 500 affordable homes for first-home buyers in targeted growth corridors through the Keystart program. Established in 1989, Keystart offers shared equity home loans to lower entry costs into the housing market and eliminate the need for Lenders' Mortgage Insurance.
Furthermore, a new $250 million Keystart commercial financing facility will provide low-cost finance for developments that include affordable housing. An additional $250 million is earmarked for a pre-sale guarantee scheme designed to assist developers in initiating new housing projects.
These measures come in response to a dynamic housing market in Western Australia. Over the past year, Perth's median home prices have surged by 21.5%, with the rest of the state experiencing a 16.3% increase. Notably, Perth recently became the fastest-growing capital city in Australia, with median home prices surpassing the $1 million mark in March for the first time.
By implementing these reforms and investments, the Western Australian Government aims to make homeownership more attainable for first-time buyers and to stimulate the construction of new homes, thereby addressing both demand and supply challenges in the housing market.
