Opposition Leader Basil Zempilas has announced plans for substantial tax reforms aimed at addressing the escalating housing crisis in Western Australia. His statement comes as discussions intensify around proposed changes to stamp duty, particularly for first-home buyers. Zempilas emphasized the need for “genuine taxation reform” ahead of the upcoming state election, highlighting that the current government has not adequately addressed the housing emergency.
Zempilas has been advocating for adjustments to stamp duty, suggesting that the duty-free threshold be linked to the median house price. He clarified that while details are not finalized, the Liberal Party is committed to presenting a comprehensive reform agenda in the near future. “Will the Liberal Party take genuine reform forward to the next election? Yes, we will,” he stated, indicating that significant proposals are forthcoming.
Currently, first-home buyers in Perth and the Peel regions do not pay stamp duty on properties valued up to $500,000 and benefit from reduced rates for properties up to $700,000. Elsewhere in Western Australia, the threshold for reduced rates is $750,000. In mid-2025, these thresholds were raised from $450,000 and $600,000 respectively as part of the state budget. Despite these adjustments, house prices have continued to soar, with the median price in Perth now approaching the $1 million mark.
The current government, led by the Cook Government, has resisted further changes to these thresholds. John Carey, the Minister for Housing, stated in January that hastily introduced changes could exacerbate the affordability crisis rather than alleviate it. “It’s important that governments act responsibly because poorly targeted or rushed changes can add further pressure to a tight market,” he explained.
Zempilas’ proposal has garnered support from various property groups. Suzanne Brown, president of the Real Estate Institute of Western Australia (REIWA), has advocated for more flexible thresholds to better accommodate the evolving housing market. She argues that the current structure needs to reflect the realities of rising property prices, which continue to pose challenges for first-home buyers.
As the state approaches the next election, Zempilas’ commitment to tax reform will likely become a focal point of political debate. His emphasis on the need for genuine change indicates a recognition of the urgency surrounding housing affordability in Western Australia. The Liberal Party’s forthcoming proposals could reshape the landscape of home buying in the region, particularly for those looking to enter the market for the first time.
