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WA Stamp Duty Debate Intensifies

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  Published in Politics and Government on Friday, January 9th 2026 at 8:01 GMT by The West Australian

Perth, WA - January 9th, 2026 - The debate over Western Australia's stamp duty system is intensifying, with Perth Lord Mayor Basil Zempilas increasing pressure on Premier Roger Cook's government to implement significant reforms. Zempilas champions the abolition of stamp duty and its replacement with a broad-based land tax, a proposal met with cautious responses from the state government who emphasize the need for careful consideration amid current economic uncertainties.

The current system, a transaction-based tax levied on property purchases, has long been criticized for creating barriers to homeownership and hindering economic activity. Zempilas argues that stamp duty is an "archaic" tax that disproportionately affects first-homebuyers and discourages those looking to downsize, effectively locking people out of the property market or limiting their choices. He believes a land tax, levied annually on the value of land regardless of transactions, would provide a more stable and equitable revenue stream for the state while simultaneously easing the financial burden on prospective homeowners.

Speaking recently to The West Australian, Zempilas reiterated his stance, stating that stamp duty is a major impediment to both individual financial freedom and broader economic growth. A shift to a land tax, he argues, would stimulate the property market, encouraging more frequent transactions and ultimately boosting the state's economy. This argument hinges on the idea that removing the significant upfront cost of stamp duty would make moving more affordable and, therefore, more appealing.

However, the Cook government is adopting a more measured approach. Treasurer Sue Ellery acknowledges the valid concerns raised by Zempilas and other stakeholders, but warns against rushing into any substantial changes to the tax system. Her primary concern revolves around fiscal responsibility - ensuring any reforms don't create undue financial strain on taxpayers or jeopardize the state's budget. The state government recognizes stamp duty represents a significant portion of its revenue, and a rapid transition to a land tax could create a substantial funding gap.

"We acknowledge that stamp duty is a significant cost for homebuyers, and we are committed to exploring options for reform," Ellery stated. "However, we need to ensure that any changes we make are fiscally responsible and do not place undue burden on taxpayers." This cautious language signals a willingness to consider reform, but also a clear prioritization of maintaining budgetary stability.

The government has already commissioned a comprehensive review of the state's tax system, expected to deliver its findings later in 2026. This review will delve into a multitude of tax-related issues, with the future of stamp duty as a central component. The scope of the review indicates the government is taking the issue seriously and is committed to data-driven decision-making. Ellery has affirmed the government's commitment to thoroughly analyzing the review's recommendations before committing to any specific course of action.

The complexity of transitioning from stamp duty to a land tax is considerable. Modelling the potential revenue implications of such a shift is crucial, as is assessing the potential impact on different demographics and property owners. Concerns have been raised about the potential for land tax increases, particularly for those on fixed incomes, and the need for mechanisms to mitigate any negative consequences. Furthermore, there are questions around the valuation of land for tax purposes and ensuring a fair and transparent assessment process.

While Zempilas advocates for a complete abolishment of stamp duty, alternative approaches could involve phasing out the tax over a period of time, coupled with a gradual introduction of a land tax. This would allow the government to manage the revenue transition and minimize disruption to the property market. The review is expected to explore these various options, alongside the potential benefits and drawbacks of each.

The debate over stamp duty in Western Australia reflects a broader national discussion about the efficiency and equity of property taxes. Several other states and territories are also considering reforms to their tax systems, with a growing consensus that transaction-based taxes like stamp duty are outdated and impede economic growth. The outcome of the WA review will likely be closely watched by other jurisdictions as they grapple with similar challenges.