Western Australian Treasurer Rita Saffioti has handed down the 2024-25 Western Australia State Budget.

While the Budget contains minimal tax reform, this year's Budget uses its seventh straight year surplus to invest in community support measures, focusing on housing, energy, infrastructure and health. One of the key initiatives introduced was a new Vacant Property Rental Incentive Scheme, which will be allocated $5m to encourage owners of vacant properties to provide a minimum 12-month lease agreement to new long-term tenants, alleviating the rental crisis.

What is most evident in this Budget is the Government’s strong financial position and its ability to use the revenue generated from iron-ore royalties, payroll tax, stamp duty and GST allocation to fund a raft of cost-of-living initiatives to combat financial pressures resulting from the high interest rate environment.

Reducing the payroll tax burden

Business and in particular small to medium businesses will be disappointed that no effort has been made to lower the thresholds on payroll tax.

No tax incentives to solve housing issues

Raised exemption limits were announced to assist first homebuyers enter the market including an exemption from stamp duty for properties valued up to $450,000 (formerly $430,000), and a concessional rate of duty for properties valued up to $600,000 (formerly $530,000).

While initiatives have been announced to fund housing shortages, nothing has been done from a tax perspective to incentivise increased supply - no duty concessions or land tax concessions. The government is picking up most of the load without incentivising private business to invest in new developments.

Investment in mental health

Sizeable investment in this space has both social and economic benefits for Western Australian citizens.

How BDO can help

If you’d like to discuss our tax services and how we can help you, contact BDO’s team of specialists in Perth.

If are you interested in expert commentary around the Federal Budget and how the tax changes announced will affect you, read our 2024 Federal Budget analysis.