WA unveils stamp duty discounts for off-plan purchases

In its efforts to breathe new life into the troubled real estate market in this state, the Western Australian government unveiled the stamp duty reductions available to off-plan apartment buyers.

Property buyers who sign a pre-construction contract for the purchase of a new apartment for the next two years are eligible for a discount of up to 75%. The discount will also apply to additional charges related to foreign property.

To find out more: Study of the impact of stamp duty "absolutely absurd"

This change means that buyers targeting an apartment of $ 400,000 will pay only $ 3,200 in stamp duty, which will save more than $ 9,700.

First-time homebuyers can take advantage of the discount in addition to the existing assistance program. This means that for an apartment valued at $ 450,000, first-time home buyers will only pay $ 960 in stamp duty.

The tables below show the savings that general buyers and first-time home buyers can make through the rebate program.

Impact of stamp duty discounts for purchasers in general

Price ($)

Present Service

New Duty

Economies

300 000

8,835

2 209

6 626

400,000

13 015

3 254

9,761

500 000

17,765

4 441

13,324

600 000

22,515

5,629

16,886

700 000

27,265

6 816

20 449

800 000

32 316

8 079

24,237

900,000

37 466

9,366

28 099

1.0m

42,616

10,654

31,962

1.5m

68 365

18 365

50,000

Source: ABC News

Impact of stamp duty reductions and assistance program for first-time homebuyers

Price ($)

Present Service

New Duty

Saving

400,000

0

0

0

450,000

3,838

960

2 879

500,000

13 433

3 358

10.075

550 000

20.140

5.035

15,105

600 000

22,515

5,629

16,886

650 000

24 890

6223

18 668

700 000

27,265

6 816

20 449

750,000

29 740

7,435

22 305

800 000

32 316

8 079

24,237

Source: ABC News

A victory for the sector

This decision is a great victory for real estate buyers, said Damian Collins, president of the Real Estate Institute of Western Australia (REIWA).

"By reducing the tax on off-plan sales, the government will not only be able to reach its target of 47% of new infill housing, but also accelerate the transition of apartment sales real housing, construction activity, "he said.

Read also: What can make WA again attractive to investors?

The stamp duty rebate could be seen as an indication that the government understands the challenges in the current market conditions, said Housing Industry Association Director Cath Hart

.

"This will result in a rapid acceleration of activity in the construction sector, which will benefit local jobs and give the industry the confidence to retain and train more workers With more than 120,000 people employed in construction in WA, the positive impact of this initiative will be felt throughout the entire residential construction supply chain, "she said.

Much remains to be done

However, Collins said the stamp duty reduction was only a beginning and that the government needed to look for other ways to help more people get into the walk.

The state government may take into account the increase in the value limit of stamp duty exemption for first-time homebuyers from $ 430,000 to $ 550,000, said Collins.

"In today's real estate climate, we need to encourage more people to buy – with first-time buyers accounting for one-third of all sales in Western Australia, they are driving the real estate market, and we should be making it easier for them. access to the market, with the help of all sectors, "Collins said.

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