Addressing Housing Affordability: A Review of the 2024-25 Western Australia State Budget

The 2024-25 State Budget, recently unveiled by the Cook Government, garnered positive reception, particularly within the real estate sector, for its measures aimed at bolstering housing supply. Notably, adjustments to the First Home Owner Transfer Duty Concession thresholds were highlighted as a step in the right direction.

The Real Estate Institute of Western Australia (REIWA) expressed satisfaction with the government's approach, emphasising the preference for incentivising housing supply over implementing new taxes. The CEO of REIWA emphasised the strength of Western Australia's economy, citing projections indicating steady population growth and sustained demand for housing, factors that are expected to keep housing prices on an upward trajectory.

Key among the budgetary changes is the revision of property price thresholds for first home buyer stamp duty exemptions to align with current market conditions. This adjustment acknowledges the significant growth in property prices over recent years, with the median house price in Perth now standing at approximately $630,000. Consequently, first home buyers will now enjoy exemptions on properties valued up to $450,000, with concessional rates applied to purchases up to $600,000.

The alterations are poised to benefit up to 5,000 first home buyers annually and are effective immediately. However, it's worth noting that thresholds for vacant land purchases remain unchanged.

In addition to measures directly impacting homebuyers, the budget allocated funding for rental reforms, including the establishment of a dispute resolution process under the Residential Tenancies Act. REIWA had advocated for adequate funding to support this initiative, and the allocation of $3.3 million for the upcoming fiscal year, along with ongoing funding, was met with approval.

Furthermore, the budget included initiatives to stimulate housing supply, such as the Vacant Property Rental Incentive Scheme and the extension of the Short-Term Rental Accommodation Incentive Scheme. These initiatives aim to encourage property owners to contribute to the long-term rental market, thus addressing housing shortages.

Moreover, significant investments were made towards new home construction, including funding for training initiatives and the development of regional housing in areas like Broome, Karratha, and Kalgoorlie. Additionally, the government earmarked funds to expand social and affordable housing, as well as to support homelessness services across Western Australia.

Recognising the impact of living costs on households, the budget included relief measures such as energy bill credits, financial support for families with school-aged children, and continued affordable airfare caps for regional residents. These initiatives aim to alleviate financial burdens and improve quality of life for Western Australians.

Key economic indicators presented in the budget underscored the state's robust financial position, including significant operating surpluses, strong economic growth, low unemployment rates, and manageable inflation levels.

In summary, the 2024-25 State Budget reflects a comprehensive approach to addressing housing affordability, rental reforms, and cost-of-living challenges, while also maintaining a favourable economic outlook for Western Australia.

Paulette Contessi 

Director/Licensee

CONTESSI PROPERTIES