West Australian Premier Colin Barnett has confirmed the stamp duty concession for first home buyers will change in the coming state budget.
Stamp duty is not levied in WA on the first $500,000 spent on a first home purchase, but the opposition expects that threshold will be lowered to $400,000.
The median house price in Perth in 2013 was $545,000 and is expected to hit $600,000 by the end of this year.
Mr Barnett told a question and answer session on The West Australian website on Wednesday that the stamp duty concession would continue, "although we are examining the level at which it is pitched".
The opposition is also tipping higher land taxes given they remain below the national average in WA even after a 12.5 per cent increase in last year's budget.
Labor also expects electricity price rises will be aggressive.
During the election campaign last year, Mr Barnett promised to keep power price rises "at or around inflation", but newly installed Treasurer Mike Nahan recently said that would be a "struggle".
Further price rises for water are expected as well after a six per cent lift in tariffs last year.
The WA government has long strived for cost reflectivity with utilities - that is, consumers pay more, reducing the subsidies required.
The premier also confirmed an increase in public transport fares, saying 70 per cent of the costs were currently paid for by the taxpayer.
But, he said, any increase would be modest.
Mr Barnett again ruled out introducing toll roads to WA, but said there was a case for raising more revenue from the operators of heavy vehicles, which cause most of the wear and tear on roads.
The premier described the budget, to be handed down on Thursday, as "reasonably tough ... to suit the times we're in".
"The next couple of years are going to be a little bit tougher for everyone," he said.
"But we have kept any increases in taxes and charges to a minimum."
In its mid-year economic review, the WA government forecast a $437 million surplus and net debt of $21.8 billion for the current financial year.
Debt is projected to rise to $24.18 billion next financial year, when a $124 million deficit is forecast.
The state was stripped of its coveted AAA credit rating last year after Standard & Poor's said there was limited "political will" to implement previous treasurer Troy Buswell's "Fiscal Action Plan" to arrest mounting debt.
Mr Barnett took a swipe at S&P on Wednesday, saying: "Comments about political will do not fit with what should be an objective task of a ratings agency".
