Western Australian budget signals local manufacturing agenda

The Western Australia Treasurer Rita Saffioti handed down the state’s budget on Thursday 19 June 2025, the Cook Government’s first budget after being elected for a third term.

The budget is on track to deliver the state’s seventh consecutive surplus, with the Cook Government estimating a $2.4b surplus for 2025-26, and surpluses of up to $2.8b forecasted through to 2028-29 largely due to the state’s resources-rich economy. However, net debt is expected to be $33.6b for the FY25 financial year, increasing over the forward estimates to $42b by 2028-29. 

The state’s domestic economy grew by 3.4 per cent over the last year, while employment growth eased to 3.3 per cent. The unemployment rate is sitting at 3.75 per cent for 2025-26, forecasted to rise to 4.25 per cent through to 2028-29. 

Revenue measures 

The Western Australian Government has announced a number of revenue measures aimed at improving housing affordability, supporting first home buyers, and encouraging investment in the rental housing market. 

Expanded transfer duty concessions for first home buyers

From 21 March 2025, first home buyers in Western Australia will benefit from expanded transfer duty concessions. Although the changes are effective from 21 March 2025, the enabling legislation is still pending.

The changes include:

• Established homes

  • Full transfer duty exemption for properties valued up to $500,000 (previously $450,000).
  • Concessional rates extended to purchases up to $700,000 in the Perth and Peel regions, and up to $750,000 in regional areas (up from $600,000).

• Vacant land

  • Full exemption for land purchases up to $350,000 (up from $300,000).
  • Concessional rates for land purchases up to $450,000 (up from $400,000).

This measure is expected to support approximately 5,500 first home buyers annually and reduce transfer duty revenue by $119m over the forward estimates period.

Land tax relief for Build-to-Rent projects

To encourage investment in long-term rental housing, the Government will increase the land tax exemption for eligible build-to-rent developments from 50 per cent to 75 per cent. This enhanced exemption applies to projects that become operational between 1 July 2025 and 30 June 2028.

The 75 per cent exemption will be available for the first three years of assessment, after which the rate will revert to 50 per cent. The final year a project can benefit from the 75 per cent rate is 2030–31, provided it became operational in 2027–28.

Extension and expansion of off-the-plan duty concessions

The off-the-plan transfer duty concession has been extended by 12 months, now running until 30 June 2026. In addition, from 21 March 2025, the Government will enhance the concession by:

• Broadening eligibility to include off-the-plan dwellings in single-tier strata and community title (building) schemes, such as townhouses and villas.
• Raising the property value thresholds:
• Full concession for pre-construction contracts up to $750,000 (up from $650,000).
• Phased concession up to $850,000 (up from $750,000), capped at $50,000.
• For under-construction contracts, the concession phases from 75 per cent to 37.5 per cent.

If you wish to discuss the Western Australian State Budget announcements, please reach out to a Grant Thornton Partner today.