New $50,000 Stamp Duty Rebate For WA Property Buyers
The WA Government announced a 75% stamp duty rebate for off-the-plan apartments, this week, in a bid to reinvigorate the property and construction sectors.
Property buyers in Perth will now be entitled to a rebate of up to $50,000 when they purchase eligible properties under a new scheme.
The Western Australian government will offer a 75% rebate for off-the-plan apartments in a bid to boost the property and construction sectors while also targeting job creation for Western Australians.
How it works:
- Available to buyers who sign pre-construction contracts to purchase a new residential unit or apartment in a multi-tiered development
- No cap on the purchase price or value of the unit or apartment
- Purchasing more than one property will make you eligible for multiple rebates
- The discount will also apply to Transfer Duty and Foreign Buyers Duty
- Starting effective immediately for the next 2 years (between 23 October 2019 and 23 October 2021)
The moves come as Premiere Mark McGowen is attempting to stimulate the residential construction industry and overall property sector. Property prices in WA have fallen away since the end of the mining boom in 2015.
Mr. McGowen is looking to not only help prop up the sector but also return the WA economy to where it once was only a few years ago. His goal is to create more jobs and let that growth filter through into the broader economy.
""My number one priority will always be creating WA jobs. This new WA jobs initiative will drive investment into our local residential construction industry and support the WA property sector.”
WA Treasurer Ben Wyatt is keen to use programs like this one to encourage urban-infill and generate economic growth at the same time.
""This scheme not only offers incentives for investment within Western Australia but will also promote job opportunities for the WA construction industry.”
""Infill helps to drive a number of important outcomes for the people of Western Australia, including more affordable housing, a better environment, revitalised shopping precincts and stronger communities.”
A win for buyers
REIWA President Damian Collins said the rebate was a win for property buyers in Western Australia and was hopeful the move would lift apartment sales.
“By reducing the tax for off the plan sales, not only will it help the government to meet its target of 47 per cent of new dwellings in infill locations, but will help increase the speed of transition from apartment sales to actual construction activity.” Mr. Collins said.
While the move is a step in the right direction, Mr. Collins believes there is still more the State Government can do to help lift the entire sector.
“Reducing the stamp duty from the build component of off-the-plan purchases is a great start, however not everyone wants a brand new property and to wait years for it to be built. The WA Government needs to look at other ways that they can help more people in owning their own homes.
“In the current real estate climate, we need to help encourage more people to buy. With first home buyers accounting for one-third of all sales in Western Australia, they are the oil of the property engine and we should be making it easier for them to get into the market, with the help of all sectors.”
“We recommend that the stamp duty exemption for first home buyers increase from $430,000 to $550,000 to help encourage sales activity in the established market as well as the infill developments.”
SMATSGroup Executive Chairman Steve Douglas believes that the newly introduced rebate could help trigger WA’s next growth cycle.
“This rebate also builds on the generous stamp duty assistance that is already available to first home buyers in WA. For example, a first home buyer purchasing an apartment valued at $450,000 would currently pay around $3,800 in duty. The rebate will reduce this to just $960.”
“With the Western Australian economy set to gain momentum with $165B of Mining & Infrastructure projects, now is a great time to act before the property market moves into its next growth cycle,” said Mr. Douglas.
General buyer savings