Australian State and Territory Budgets 2025-26 – Western Australia, New South Wales, Australian Capital Territory and Queensland

At a glance

WA, NSW, ACT and Qld released budgets for the 2025-26 financial year.

Key takeaways include:

• Further housing measures (including first home buyer relief, and BTR land tax incentives).
• In Qld, streamlining of future foreign surcharge ex gratia relief applications, and the introduction of measures to prevent foreign surcharge refunds for assessments prior to 8 April 2024 (new ‘windfall tax’).

Western Australia (WA)

The WA Deputy Premier and Treasurer delivered the WA 2025-26 Budget on 19 June 2025. The Budget has not introduced any new taxes, but it has implemented measures to encourage investing in WA to enhance the WA economy and to provide cost of living relief packages.

As a result of Budget announcements, WA’s State taxation regime introduces the following relevant key changes:

1. Increased stamp duty exemptions for first home buyers
2. Increased land tax exemption for three years for eligible build to rent (BTR) developments
3. Off the plan transfer duty concession extended for 12 months.

New South Wales (NSW)

The NSW Treasurer delivered the NSW 2025-26 Budget on 24 June.

The key measures are:

1. The indefinite extension of the 50% reduction in land value for land tax purposes for eligible new BTR developments, replacing the previous sunset date of 31 December 2039. BTR developers may also apply for exemptions or refunds from foreign purchaser duty and land tax surcharges.
2. The extension to Revenue NSW’s integrity funding to support an increased level of tax compliance.

Queensland (Qld)

The Qld Treasurer delivered the Qld 2025-26 Budget on 24 June.

The key measures are:

1. From 1 May 2025 abolishing transfer duty for all first home buyers purchasing a new build or purchasing vacant land to build a home on
2. Streamlining the process for claiming ex gratia relief from land tax foreign surcharge and additional foreign acquirer duty
3. Introducing a payroll tax exemption for payments made by any medical practice to contracted or employed general practitioners
4. In addition, the Duties Act 2001 (Qld) (Duties Act) and Land Tax Act 2010 (Qld) (Land Tax Act) will be amended to introduce a windfall duty and a windfall tax, which will be imposed as an alternative to a foreign surcharge liability.

Australian Capital Territory (ACT)

The ACT Treasurer delivered the ACT 2025-26 Budget on 24 June.

The budget introduced several new measures including:

1. An increase in the price threshold to $1,020,000 (for 2025-26) for the Home Buyer Concession Scheme, Pensioner Duty Concession Scheme and Disability Duty Concession Scheme
2. Introducing a four-year Health Levy for all residential, commercial and rural properties of $250
3. Introducing new general rates thresholds for high value residential and for the highest-valued commercial properties. For commercial properties the threshold will be an average unimproved value (AUV) of $5 million and the rate 5.9670% in 2025-26. For residential, the threshold will be an AUV of $1 million and the relevant rate will be 0.5734% in 2025-26.
4. Motor vehicle duty concessions for zero emissions vehicles will be reduced
5. The payroll tax base will be broadened by reducing the payroll tax threshold and the tax rate for small to medium local businesses from 1 July 2026
6. An increase to the Ambulance Levy (paid by private health insurers) by an additional 10% from 1 January 2026
7. An increase in the Utilities Network Facilities Tax, charged on the owners of network facilities on land in the ACT, by an additional 2.5% above the Wage Price Index (WPI) for 2025-26 and 2026-27.