WA stumps up cash for new home builds

Western Australia has become one of the nation's best locations for first-time buyers keen to build a new house, with nearly $70,000 in grants and rebates now available under state and federal government initiatives.

WA Premier Mark McGowan on Sunday revealed the details of his government's housing sector stimulus plan, a $440 million package which set aside $117 million to provide a $20,000 Building Boost to homebuyers who sign up to build a house before the end of the year.

The stimulus also applies to townhouse developments, while the WA government expanded its 75 per cent off-the-plan stamp duty rebate to include multi-residential buildings under construction but not yet completed

Stamp duty rebates for apartment buildings under construction are capped at $25,000, while if a buyer purchases off the plan, they are eligible for up to $50,000 in stamp duty concessions. 

Multi-residential buildings are not eligible for the new Building Bonus boost, however, the new grants and rebates are in addition to Western Australia’s $10,000 first homeowner grants, as well as the federal government’s $20,000 HomeBuilder grants.

If a potential buyer qualifies for all of the state and federal stimulus, they could receive up to $69,440, giving WA the most generous package of any Australian state other than the Northern Territory.

The best jurisdiction for government grants and rebates is regional Victoria, where first time buyers could be eligible for a package worth up to $76,070.

Alongside the WA government’s Building Bonus, Mr McGowan said $319 million would be spent on building, buying, renovating and maintaining social housing.

Mr McGowan said the stimulus was designed to create an ongoing pipeline of work in the housing sector, which has been declining steadily since hitting a historical peak in 2014-15, and is expected to reach record low levels of activity in 2019-20.

"WA's residential building industry makes a significant contribution to our economy and community, so it's important we help protect, support and create new jobs in this space," Mr McGowan said.

See below for what grants and rebates are available elsewhere in Australia:

Homebuyer grants, rebates and stimulus packages

All states 

• $25,000 HomeBuilder grant for new builds or renovations worth at least $150,000. 

New South Wales

• $10,000 first home owner’s grant for new builds worth less than $600,000 (including land)
• Stamp duty exemption for first homebuyers for dwellings worth less than $650,000 (including land)
• $59,682 - Maximum grant/rebate/exemption package for first homebuyer (including state and federal programs). 

Victoria

• $10,000 first home owner’s grant for new builds worth less than $750,000 (including land) (Melbourne metropolitan area)
• $20,000 first home owner’s grant for new builds worth less than $750,000 (including land) (Regional Victoria)
• Stamp duty exemption for first homebuyers for dwellings worth less than $600,000 (including land)
• $66,070 - Melbourne maximum grant/rebate/exemption package for first homebuyer (including state and federal programs)
• $76,070 - Regional Victoria maximum grant/rebate/exemption package for first homebuyer (including state and federal programs).

Queensland

• $15,000 first home owner’s grant for new builds worth less than $750,000 (including land)
• $15,925 Stamp duty discount for new builds worth less than $550,000 (including land) (First home concession, subject to eligibility criteria)
• $7,175 Stamp duty discount (Home concession, subject to eligibility criteria)
• $55,925 - maximum grant/rebate package for first homebuyer (including state and federal programs).

Western Australia

• $10,000 first home owner’s grant for new builds worth less than $650,000 (including land). (New builds worth less than $1 million for locations north of the 26th parallel)
• Stamp duty exemption for first homebuyers for dwellings worth less than $430,000.
• $20,000 Building Bonus grant (multi-residential developments not eligible)
• 75% Off-the-plan stamp duty rebate (capped at $50,000). Expanded to include developments currently under construction (capped at $25,000)
• $69,440 - maximum grant/rebate package for first homebuyer (including state and federal programs).

South Australia

• $15,000 first home owner’s grant
• $40,000 - maximum grant/rebate package for first homebuyer (including state and federal programs).

Tasmania

• $20,000 first home owner’s grant
• 50% stamp duty concession for dwellings worth less than $400,000
• $51,998 - maximum grant/rebate/exemption package for first homebuyer (including state and federal programs).

Northern Territory

• $10,000 first home owner’s grant 
• $20,000 BuildBonus grant (introduced in February 2019 and limited to first 699 applicants).
• Stamp duty exemption of $18,601 (Territory home owner discount)
• $73,601 - maximum grant/rebate package for first homebuyer (including state and federal programs).

Australian Capital Territory

• Stamp duty exemption available subject to eligibility criteria
• $25,000 + value of stamp duty exemption -maximum grant/rebate package for first homebuyer (including state and federal programs).