This article is from the Australian Property Journal archive
WESTERN Australia’s Cook government has introduced the Duties Amendment Bill to Parliament, which it hopes will simplify receiving transfer duty support when buying off-the-plan apartments in multi-storey developments.
The government committed $33 million in the 2023-24 State Budget to extend the off-the-plan transfer duty rebate and lift the concession thresholds. Should the Duties Amendment (Off-the-Plan Concession and Foreign Persons Exemptions) Bill 2023 pass, purchasers will receive an upfront concession on the duty payable, instead of paying the full amount of duty upfront and receiving a rebate after settlement.
It will provide a 100% duty concession capped at $50,000 for properties valued up to $650,000 – an increase on the previous $500,000 – and a concession phasing down to 50%of the duty, also capped at $50,000, for properties valued at $750,000 or more. This was formerly $600,000.
Concession thresholds will also be increased for eligible contracts signed on or after 11th May 2023.
Also, existing foreign developer exemptions will be expanded to remove restrictions on the type of land eligible for a refund of foreign buyers’ duty if it is acquired for residential development.
The foreign buyers’ duty amendments will apply retrospectively from the beginning of 2023.
Housing Minister John Carey said the government is “using every lever we can to bolster the supply of housing throughout Western Australia – including through a range of tax and stamp duty reforms and incentives”.
“By extending the off-the-plan duty assistance and lifting the thresholds for the concessions, we are providing opportunities for more people to purchase off-the-plan properties, which assists in getting new apartment developments off of the ground, increasing overall housing supply.”
Finance Minister Sue Ellery the government’s focus is supply, while Treasurer Rita Saffioti said the Bill delivers tax reforms and incentives to encourage urban infill and improve housing affordability.
