This article is from the Australian Property Journal archive
THE Western Australian government is looking to boost housing supply by extending the off-the-plan transfer duty concession to include apartments under construction and bringing more infill developments online.
By extending transfer duty concessions to include off-the-plan apartments under construction, the government is investing a $13.9 million to support home buyers.
“Our government is doing everything we can to boost housing supply and the extension of the transfer duty concession to purchases of apartments under construction is a direct response to feedback we have received from industry,” said Rita Saffioti, treasured.
“We want to make sure that apartment developments aren’t being held up and extending the concession to include apartments under construction will remove another constraint preventing projects getting underway.”
Buyers of apartments under construction that sign an eligible contract to receive a transfer duty concession of up to 75% of the concession currently available for off-the-plan purchases, capped at $50,000.
With 75% of duty payable for properties valued up to $650,000; 75% sliding to 37.5% of duty payable for properties valued between $650,000 and $750,000; and 37.5% of duty payable for properties valued at $750,000 or more.
This concession will be available for purchases from 31 August 2023 until 30 June 2025.
“The extension of the duty concession provides significant transfer duty relief for people who purchase apartments in new developments after construction commences,” said Sue Ellery, finance minister.
“Together with the existing off-the-plan transfer duty concession, these measures provide some of the most generous support in the country to support people in purchasing apartments, to boost housing supply and encourage urban infill.”
The WA government also announced an addition $15.45 million to support 15 infill developments that will see more than 1,500 new apartments.
The $80 million Infrastructure Development Fund deliver funding to help address upfront costs associated with connecting essential infrastructure.
“Our Government is doing everything we can to boost medium and high-density dwellings, which will be critical in meeting the future demand for housing in Western Australia. Density drives vibrancy, life, and street activity, which helps create a real sense of place – for both locals and tourists alike,” said John Carey, housing minister.
“Density delivers foot traffic for small business and helps to keep local schools, libraries, and other community services and groups – like playgroups – open and thriving. More importantly density provides housing choice – and it attracts younger people and families to ageing suburbs.”
$40 million of the fund has been allocated for infill developments in metropolitan Perth, with $40 million for workers’ accommodation in regional areas.
Almost $22 million has been allocated from the infill stream of the fund, which will support 27 projects and the construction of almost 2,200 apartments.
“All of these programs will encourage more infill development, particularly in strategic locations that are close to public transport, like the new train stations being delivered through our METRONET program,” added Carey.
These latest additions will build on the WA’s $750 million housing package in its 2023-24 State Budget.
“Right across the country we are seeing significant pressure on our housing markets – and the best way to tackle the issue is to bring more housing online,” said Roger Cook, premier.
“Our Infrastructure Development Fund will help to deliver thousands of additional new apartments into the market. These initiatives will help home buyers get into apartments, bringing down the cost of purchasing a new apartment.”
