Introduction

The Western Australian (“WA”) Labor Government has handed down its ninth consecutive WA Budget (“Budget”) on 19 June 2025. The Budget was handed down by the Treasurer Hon Rita Saffioti MLA, a member of Western Australia’s elected Labor Government.

The Budget is focused on delivering a strong economic plan for the State in a world of global instability and uncertainty, cementing WA as the most responsible budget manager of the nation, while investing in the economic and social infrastructure to power new jobs and new investment in the State.^[1]

WA is on track to deliver a seventh consecutive operating surplus in 2024-2025, being an operating surplus of $2.5 billion in 2024-25 and a forecast operating surplus of $2.4 billion in 2025-26.^[2] WA’s total revenue is budgeted to be $50,257 million in 2025-26, with a forward estimate of $48,746 million in 2028-29.^[3] The corresponding total expenses is budgeted to be $47,844 million in 2025-26, with a forward estimate of $45,901 million in 2028-29.^[4]

The Budget prioritises key economic infrastructure projects that will power new industries and deliver new jobs, housing construction transformation to deliver new opportunities for affordable living and investment in hospitals and the health system.^[5]

No major tax measures were announced in the Budget.

Key tax takeaways

Stamp Duty

First Home Owner Duty Exemption and Concession Thresholds Increase

The transfer duty exemption and concession thresholds for first home buyers of established properties and vacant land have increased. Notably, a full duty exemption is now available, on transactions entered into on or after 21 March 2025, for established properties up to $500,000 and vacant land up to $350,000. Similarly, the threshold for concessional rate of duty has also increased to $700,000 (Perth and Peel regions) and $750,000 (other regions) for purchasers of established property and $450,000 for vacant land. This measure is estimated to support around 5,500 first home buyers per annum and reduce stamp duty revenue by $119 million across 2024-25 and the forward estimates period.^[6]

Off-the-Plan Transfer Duty Concession Extension

The off-the-plan (“OTP”) transfer duty concessions for pre-construction and under construction transactions have been extended by 12 months (to until 30 June 2026). Further, for transactions entered into on or after 21 March 2025, the OTP concession has been expanded to OTP dwellings on single-tier strata schemes and community title schemes, including townhouses and villas, and the lower and upper property price thresholds have been increased to $750,000 and $850,000, respectively. This measure is estimated to reduce transfer duty revenue by $23.7 million across the forward estimates period.^[7]

Land Tax

 Increased Land Tax Relief for Build-to-Rent Developments

The land tax concession for eligible build-to-rent developments that become operational (i.e. able to be lawfully occupied) between 1 July 2025 and 30 June 2028 will increase to 75% (up from 50%) for the first three assessment years only, after which the concession will revert back to 50%. This measure is expected to have a negligible impact on forecast land tax revenue.^[8]

Payroll Tax

There were no major announcements from a payroll tax perspective in the Budget. We have set out below some of the key stats regarding payroll tax collections as part of the budget estimates.

• Revenue forecast: Taxation Revenue is forecast to increase by 1.7% (or $252 million) in 2025-26, which is underpinned by strong growth in payroll tax, land tax and insurance duty.^[9]
• Revenue growth: Specifically, payroll tax is expected to grow by 4.7% in 2025-26 (as compared to growth of 8.8% in 2024-25), with the slower growth attributable to a slowdown in both hiring and wages growth in the state. Nevertheless, the expected growth equates to an annual increase of $274 million driven by strong employment growth in the state and above-average wages growth in WA.^[10]
• No changes to tax-free threshold: There were no changes announced in relation to the WA tax-free threshold, which has been operated at the $1 million mark since 1 July 2020 or the exempt tax payers (including, State Government departments, public hospitals, schools/colleges, charitable bodies, local governments).^[11]

[1] Western Australia Budget 2025-26, Budget Paper No.1 (Page 1).

[2] Western Australia Budget 2025-26, Budget Paper No.1 (Page 3).

[3] Western Australia Budget 2025-26, Budget Paper No.3 (Page 4).

[4] Western Australia Budget 2025-26, Budget Paper No.3 (Page 4).

[5] Western Australia Budget 2025-26, Budget Paper No.1 (Page 2).

[6] Western Australia Budget 2025-26, Budget Paper No.3 (Page 76).

[7] Western Australia Budget 2025-26, Budget Paper No.3 (Page 77).

[8] Western Australia Budget 2025-26, Budget Paper No.3 (Page 76).

[9] Western Australia Budget 2025-26, Budget Paper No.3 (Page 77).

[10] Western Australia Budget 2025-26, Budget Paper No.3 (Page 78).

[11] Western Australia Budget 2025-26, Budget Paper No.3 (Page 346).