This article is from the Australian Property Journal archive
THE McGowan government is improving housing affordability by expanding the existing transfer duty concession for off-the-plan purchases to 100% for properties valued up to $650,000.
The off-the-plan transfer duty concession will now be available until 30 June 2025 and the thresholds for exemptions and concessions lifted to:
- For properties valued up to $650,000 from $500,000; and
- phasing down to a 50% concession for properties valued at more than $750,000, previously $600,000.
The measures are expected to cost the budget $33 million.
Housing Minister John Carey said the changes build on the government’s continuing efforts to improve housing affordability and increase supply at the affordable end of the market, while also supporting density and vibrancy in urban areas. They will also help to smooth the pipeline of work for the construction sector beyond the current boom in activity and ensure it remains sustainable.
Furthermore, the government has made amendments to Keystart’s Urban Connect pilot program, which supports medium and high-density living, that means one-bedroom apartments will now be eligible. A new Keystart loan program will also be introduced to enable customers to secure pre-sale off-the-plan properties.
“Our government is using every lever it can to bolster housing supply and choice throughout Western Australia.
“We continue to deliver a range of important tax reforms and incentives that will provide a boost to housing and land supply, while continuing to work with industry to cut red tape. Our commitment in this Budget to extend the off-the-plan transfer duty rebate and lift the threshold for exemptions and concessions is a clear incentive to build new apartments, and provide more opportunity for Western Australians to downsize or buy their first home.” said Carey.
Planning Minister Rita Saffioti said the extension and expansion of the off-the-plan transfer stamp duty rebate is another great initiative that will make housing more affordable and encourage greater housing choice.
“The expansion of the rebate programs is among a number of initiatives our Government has put in place to encourage more infill development such as our $80 million Infrastructure Development Fund and the $55 million Infill Sewerage Program.
“All of these programs will encourage more infill development, particularly in strategic locations that are close to public transport, like the 23 new train stations being delivered through our METRONET program.” Saffioti concluded.
