WA Budget 2026: What the Stamp Duty & Keystart Changes Actually Save You

If you've been saving for your first home in Perth, the State Budget handed down in May 2026 quietly made that job easier. Stamp duty thresholds went up, and Keystart lifted both its income limits and its property price cap. Here's exactly what changed and what it's worth in real dollars.

What Changed in the May 2026 Budget

As part of a $297 million housing affordability package, the WA Government lifted the first home buyer stamp duty exemption and concession thresholds by $100,000. That single change is worth up to $22,515 to an eligible buyer, depending on purchase price. Alongside it, the Budget committed $375 million to build 500 affordable homes reserved for first home buyers, delivered through Keystart's shared equity scheme, plus a further $250 million commercial financing facility to help more developments reach completion.

The short version

Higher stamp duty thresholds, a higher Keystart property cap, and higher Keystart income limits all landed within a few months of each other. Combined, they've reopened the door for a meaningful number of Perth buyers who were priced out in 2024–25.

Stamp Duty: The Real Dollar Impact

With Perth's median house price now above $1 million, a lot of first home buyers were creeping past the old stamp duty thresholds without meaning to. The $100,000 lift in exemption and concession thresholds directly addresses that. On a typical entry-level purchase, this can mean the difference between paying full stamp duty and paying close to nothing.

The exact saving depends on where your purchase price sits relative to the new thresholds, so this isn't a one-size-fits-all number — but for many buyers in the $500,000–$650,000 range, it's the difference between a stamp duty bill and no stamp duty bill at all.

Keystart: Higher Caps, Wider Eligibility

Keystart, the WA Government's low-deposit lender, lifted its income and property price limits in April 2026. If you checked your eligibility any time before this year and missed out, it's genuinely worth checking again.

Limit	Before Apr 2026	From Apr 2026
Singles income limit	$148,000	$155,000
Couples / families income limit	$218,000	$228,000
Perth metro property price cap	$800,000	$860,000

The trajectory matters here. Keystart's limits have moved three times in under eighteen months — December 2024, August 2025, and April 2026 — each time tracking WA wage growth and the rising Perth median. It's a strong signal that eligibility settings are being actively managed to keep pace with the market, rather than left to quietly lock buyers out.

If you were told "no" by Keystart in 2024 or early 2025, the settings that knocked you back have almost certainly changed. It costs nothing to check again.

Stacking the Schemes

None of these changes work in isolation — the value is in how they combine. A typical eligible Perth first home buyer can now potentially stack:

• The new, higher stamp duty exemption or concession threshold

• The First Home Owner Grant (FHOG)

• Keystart's 2% deposit, no-LMI structure, now with a higher income and property cap

• The federal 5% Deposit Scheme, for buyers who fall outside Keystart's settings but within the federal criteria

Which combination actually applies to you depends on your income, your deposit, and the property you're targeting — and getting that stack wrong is the single most common way Perth buyers leave money on the table.

Not sure which schemes you actually qualify for?

What This Means for Your Timing

With Perth's median dwelling value still climbing and the RBA cash rate sitting at 4.35% after three hikes this year, borrowing power is tighter than it was in 2024. The Budget changes partly offset that by reducing upfront costs and widening who qualifies for low-deposit lending — but they don't change your borrowing capacity itself. The practical takeaway is to get your numbers checked properly rather than assuming either the good news or the rate environment applies cleanly to your situation.

This article is general information only and does not consider your objectives, financial situation or needs. Scheme eligibility, thresholds and rates are subject to change — always confirm current details with Keystart, the WA Government or your broker before making a decision. Ian Freeman is a Credit Representative Number 439731 of Australian Credit Licence 384704 (Finsure Finance and Insurance Pty Ltd).