Summit Homes Group is proud to have been named the 2025 HIA Professional Major Builder for Western Australia, marking our sixth consecutive year receiving this prestigious industry award.
Own Land in Perth? Here’s Why July 2027 Is the Date to Know
Whether you bought a vacant block in Perth last year or you’re about to purchase one, the 2026 federal budget has something worth knowing. If you already own vacant land in Perth and haven’t yet started building, it’s particularly relevant to your situation.
From 1 July 2027, the tax treatment of residential property investment is changing.
New builds come out of it in a stronger position, and people who start building before that date lock in those advantages from day one. On top of that, the WA state budget has just introduced a significant incentive package for people purchasing land and building here in Western Australia.
If you’ve been sitting on a block wondering when to move, or you’re close to buying land and haven’t quite pulled the trigger, here’s what the 2026 budgets mean for you.
The federal change: new builds win
The big shift in the 2026–27 federal budget is a restructure of how residential investment property is taxed; and new construction is firmly on the right side of it.
From 1 July 2027, negative gearing will be limited to new builds. Build a new home, whether to live in, rent out, or sell, and you keep the full negative gearing treatment that has always applied to new construction.
On capital gains tax, new build investors get an additional advantage. According to the federal budget factsheet, when you sell you can choose between the existing 50% CGT discount or the new indexation model – whichever works out better for your situation at the time. Most property investors lose access to the 50% CGT discount after July 2027. New build investors keep it as an option.
The federal government has been deliberate about this move; new housing construction is where they want investment to flow, and the tax settings now reflect that clearly.
One important note: to qualify as a new build under these rules, the property needs to genuinely add to housing supply. Building on vacant land qualifies which is exactly the situation most Perth landowners with an unbuilt block are in.
For a Perth landowner who’s been weighing up when to act, that’s a concrete financial reason to move now rather than later.
If you’re purchasing land: WA has stacked on top
If you’re yet to buy your block, the WA state budget has added a strong incentive layer on top of the federal changes.
As part of a $297 million housing tax package announced on 7 May 2026, first home buyers purchasing vacant land pay no stamp duty on blocks valued up to $450,000 – up from the previous $350,000 threshold – with concessions applying on land up to $550,000. Combined with the First Home Owner Grant, the total savings for a first home buyer purchasing land and building can reach up to $25,390.
The First Home Owner Grant cap has also been lifted to $800,000. And in a practical win for people building, the WA Government has decoupled the grant cap from stamp duty eligibility — so first home buyers can still access the stamp duty concession on their land even if the total house-and-land value exceeds the cap.
Transactions from 7 May 2026 are covered. If settlement happens before the legislation passes on 28 July 2026, you’ll initially be assessed at the old rates and refunded the difference once the changes take effect. Buying now doesn’t mean missing out.
WA Government — $297 million tax package to deliver for WA first home buyers | 2026–27 Housing Taxation Package
The window is the same for both
Whether you already own land or you’re about to buy, the pre-July 2027 window applies to you equally. Building now means locking in the full federal tax treatment for new construction from day one.
If you’re at the purchasing stage, the WA incentives sit on top of that. The conditions for building a new home are supportive right now – from both a federal and state level. The next step is simply working out what you want to build.
Ready to Build? Let’s Talk About Your Block
You’ve done the hard part – you own the land, or you’re ready to buy it. The next step is finding out what’s possible on your block.
At Summit Homes, we’ve been helping Perth families build for more than 48 years. More than 45,000 families have built with us – and as a six-time HIA award-winning Perth home builder, we bring the experience and track record to back it up.
Whether you have a clear vision or you’re just starting to explore what suits your block and your budget, we’d love to help. Take a look at our home designs; from single-storey layouts through to multi-generational floorplans and more. When you’re ready, get in touch to see what we can do together.
Talk to the Summit Homes team today
Disclaimer
Figures and information referenced are sourced directly from WA Government announcements. We recommend confirming current eligibility with a licensed settlement agent or financial adviser before making decisions based on these figures.
References
Federal Budget – Negative Gearing and CGT Reform factsheet:
WA Government – $297M First Home Buyer Tax Package
WA Government – 2026–27 Housing Taxation Package
https://www.wa.gov.au/government/announcements/2026-27-housing-taxation-package
WA Government – About The First Home Owner Grant
https://www.wa.gov.au/government/publications/about-the-first-home-owner-grant
