As seen in The West Real Estate
Stamp duty and downsizing have been in the news recently, as South Australia heads towards its state election.
The Labor party has promised to abolish stamp duty for downsizers buying newly built or off-the-plan property valued at up to $2 million. The Liberal party is offering South Australians over 55 a $15,000 stamp duty concession to move into a smaller home under $1.2 million.
REIWA welcomes the attention these proposals have brought to the costs associated with downsizing. Several other states already have some form of concession to facilitate downsizing. WA does not. REIWA has been advocating for a stamp duty concession for downsizers for many years and it is time the WA government took action.
According to the BCEC Every Person Counts report the number of people in their 70s increased 62 per cent in the last decade. Many of these will be living in large family homes that no longer suit their needs however downsizing isn’t financially viable.
In a 2025 reiwa.com Housing Issues Survey, 63 per cent of respondents reported stamp duty was a significant barrier to downsizing. For many potential downsizers, the prospect of paying tens of thousands of dollars in upfront transaction costs is a clear deterrent and the alternative is to remain where they are.
In addition, downsizing doesn’t necessarily provide the financial windfall you might expect. Thanks to strong price growth in recent years, downsizers may receive a premium price on their current home, but they can expect to pay a premium price (and a sizeable amount of stamp duty) on their next. And, as many downsizers tell us they would like to downsize to a more modern home, there is often not a significant difference between the price they receive for their existing property and the price they pay for the new one. Again, the alternative is to remain in their current home.
As we head towards WA’s 2026-27 State Budget, REIWA is calling for a $10,000 stamp duty concession for eligible downsizers.
We don’t believe offering a stamp duty concession to downsizers would stimulate the market. But it would reduce the financial strain of downsizing. This would be especially welcome by WA seniors as the cost of living continues to escalate. It would also have several other benefits.
Enabling people to downsize would facilitate some much-needed mobility within the WA property market and potentially free up large family homes that are in strong demand.
It would also be of financial benefit to the government. It would receive stamp duty revenue from two transactions: the downsizer’s purchase of a new property and a buyer’s purchase of the downsizer’s existing property. If downsizers stay in place, it receives no revenue.
Suzanne Brown
REIWA President
