Calls for Cook Government to move further on abolish stamp duty for ‘overlooked’ downsizers
Thousands of large inner suburban homes could be freed up for new homebuyers, if the Cook Government followed South Australia’s lead to consider abolishing the stamp duty for downsizers. Credit: The West Australian
Thousands of large inner suburban homes could be freed up for new homebuyers, if the Cook Government followed South Australia’s lead to consider abolishing the stamp duty for downsizers.
Some 200,116 properties with three or more bedrooms in Western Australia have been owned by the same people for 20 years or more, according to research by a leading Perth real estate and property management group, which hints at the scale of the downsizer roadblock in the WA market.
“There are an estimated 600,000 people in the downsizer age group in Western Australia,” Limnios Property Group managing director James Limnios said.
“By 2036, the number of people in this age group is expected to surge to more than 700,000 due to our ageing population.
“But downsizers in Western Australia have been largely ignored in favour of first home buyers, who have received generous government incentives over recent decades to build new homes in the outer fringe suburbs. It is now time to focus on downsizes as they hold the key to resolving our housing crisis.”
James Limnios, Managing Director of Limnios Property Group Credit: DAVID BROADWAY/Supplied
The downsizer market potentially includes more than 18,000 people in Canning aged 55 to 75 years, based on ABS statistics. A further 25,000 people fall into the same age bracket in Melville and 8000 in Fremantle, “who are fighting over the very limited numbers of new homes, such as villas, coming onto the market”, Mr Limnios said.
As part of new efforts to encourage downsizing, the Cook Government last week promised stamp duty relief would be extended for off-the-plan apartment purchases.
Treasurer Rita Safiotti announced the changes in a keynote speech at an Urban Development Institute of Australia event in Perth, which she said would support downsizing and help deliver more infill development.
The threshold for stamp duty exemptions for dwellings purchased off-the plan will increase $50,000 to $800,000, while properties valued above $900,000 will get 50 per cent off.
For dwellings sold while under construction, the threshold for a 75 per cent concession will be increased to $800,000, tapering to a 37.5 per cent concession above $900.000.
The concessions will also be extended until 2028 and expanded to new survey-strata dwellings, making duplexes and triplexes eligible.
Buyers will save an estimated $32,300 for an $800,000 property purchased pre-construction or $24,200 if their new home is purchased during construction.
“We’re providing greater choice to buyers and making home ownership more affordable,” Ms Saffioti said.
“This means older Western Australians looking to downsize can save thousands when buying a new apartment, townhouse, villa or unit off-the- plan or under construction.”
Deputy Premier Rita Saffioti. Credit: Justin Benson-Cooper/The West Australian
The announcement will cost the Government $70 million, and comes as it is facing pressure to use a $2 billion Budget windfall to help fuel housing supply.
The Government raised a record $2.034b in stamp duty revenue in the six months to December last year, as a result of surging house prices that have doubled in more than 50 Perth suburbs in the past five years.
Meanwhile, almost half the number of listings were available for sale in Perth in January compared to a year ago, further increasing the market squeeze.
“We are focused on measures that increase housing supply, including through changes to stamp duty that encourage downsizers to invest into new apartments and townhouses,” Housing Minister John Carey said last week.
“These changes are a major expansion to our concessions that include new strata, including duplexes and townhouses.”
The State Opposition has urged the Government to slash stamp duty by 20 per cent across the board.
The Chamber of Commerce and Industry has previously called for stamp duty to be abolished altogether and replaced by a broad-based tax on gross rental value instead, while the Property Council of WA has called for more grants to make higher-density projects viable.
The Real Estate Institute of WA has also highlighted the downsizing roadblock, suggesting initiatives to encourage more medium-density in infill areas, such as a $10,000 stamp duty concession for eligible downsizers.
It also recommended the Government’s Infrastructure Development Fund be extended to medium-density developments, which could help some boutique infill developers progress more projects.
Mr Limnios said the Government should follow South Australia’s lead and abolish stamp duty entirely for potential downsizers wanting to move into a newly constructed home.
SA Premier Peter Malunauskas has announced that, if re-elected, his government would abolish the tax for people aged 60 or above, allowing eligible buyers to potentially save more than $100,000 in stamp duty.
“Western Australia desperately needs a similar breakthrough policy initiative to help solve our very challenging housing crisis that, is in part, caused by downsizers being unable to downsize and free up much needed housing stock,” Mr Limnios said.
“The reality is that we need to start directing more financial incentives to enable thousands more people to downsize in infill areas of Perth so we can fix the blockage in the housing market.
“Many of these downsizers want to stay in their own established area where they have strong social connections. However, most of these people currently cannot vacate their large homes and move into new medium low- rise housing in their local area because this option in many cases does not exist due to lack of suitable housing.”
He said a government taskforce was urgently needed to formulate an infill strategy focusing on new housing for downsizers, that could be aggressively supported by all levels of government.
“In particular, the taskforce should examine the massive subsidies taxpayers spend annually on new developing urban sprawl housing that is now questionable in terms of demographic changes in our society and whether this money would be better spent in encouraging more appropriate infill housing,” Mr Limnios said.
Article by Belinda Hickman & Jessica Page | Fri, 20 March 2026 5:00AM
The West Australian
