Immediate stamp duty concessions for off the plan apartment buyers in Western Australia
In a move aimed at stimulating housing supply and spurring new development, the Western Australian government has introduced sweeping changes to their stamp duty rules.
Under the proposed laws, purchasers of off-the-plan apartments in multi-storey developments across WA stand to benefit from significant stamp duty discounts, signalling a shift in the way property transactions are taxed in the state.
The cornerstone of the reform is an immediate stamp duty discount, potentially worth up to $50,000, for homebuyers and investors acquiring off-the-plan apartments.
Unlike the traditional approach of offering rebates post-purchase, this discount will provide tangible savings right at the contract stage, making property acquisition more financially palatable for a broader range of buyers.
The WA government has also earmarked a substantial $33 million for extending the off-the-plan transfer duty discount until June 2025. This move comes hand-in-hand with an upward revision of concession thresholds, alongside the expansion of exemptions for foreign developers.
The recalibrated threshold structure offers enhanced incentives to prospective property buyers. For properties valued at up to $650,000, the discount will be a full 100 per cent superseding the previous limit of $500,000.
As property values increase, the discount tapers down, with properties priced between $650,000 and $750,000 receiving a 50 per cent reduction, compared to the previous threshold of $600,000.
WA Housing Minister John Carey underscored the government's commitment to leveraging every available means to invigorate housing supply across the state.
"By extending the off-the-plan duty assistance and revising concession thresholds, more individuals would be enticed to purchase off-the-plan properties, contributing to the realisation of new apartment developments and an overall expansion of housing supply," Carey said.
Cath Hart, CEO of the Real Estate Institute of WA (REIWA), praised the adjustments for their potential to drive housing diversity and supply.
“This will increase housing diversity and supply, providing more opportunities for people to buy a home either as a residence or investment, which will help to address the housing shortage in the rental market,” Hart said.
“Housing supply is the greatest challenge facing the market at the moment and we welcome actions that boost supply and also provide more housing diversity.”
Tanya Steinbeck, CEO of the Urban Development Institute of Australia (UDIA) WA, suggested that further measures are warranted. In particular, she proposed the elimination of the foreign buyer surcharge and the expansion of the off-the-plan stamp duty concession to projects already in progress.
“These added measurements will assist in building much needed consumer confidence and attract investors in apartment projects thereby improving the availability of rental properties for West Australians,” Steinbeck said.
WA Shadow Housing Minister Steve Martin emphasised the necessity for broader reforms to tackle the ongoing housing crisis. Martin pointed to a range of issues spanning social housing shortages, low rental vacancy rates, and affordability challenges, indicating the need for comprehensive solutions.
