This article is from the Australian Property Journal archive
THE Western Australian government will extend the rebate for off-the-plan residential purchases for a further two years after the state delivered a massive surplus of $5.6 billion despite COVID.
The latest measure is in addition to the previously announced $875 million investment in social and community housing.
The rebate of 50% will be capped at $50,000 and apply to buyers who sign pre-construction contracts between October 24, 2021 and October 24, 2023 to purchase a new residential unit or apartment in a multi-tiered strata development.
For a first homebuyer purchasing an apartment valued at $450,000, they would pay around $3,838 in duty without any rebate. The 50% rebate will reduce this to just $1,919.
The current rebate available up to October 23 2021 is 75% up to $50,000.
Premier Mark McGowan said building approvals in the state have soared with the introduction of a range of measures, including the $20,000 Building Bonus grant and $166.3 million Regional Land Booster package.
In 2020-21 there were nearly 27,000 new home building approvals across the State – an increase of 89% over the year.
“We have seen enormous activity in the construction sector over the past year, which will translate to more affordable homes and more jobs.” McGowan said.
Planning Minister Rita Saffioti said urban infill and residential developments close to METRONET will deliver more affordable housing options with easy access to public transport for our growing populations.
“Older Western Australians looking to downsize will also benefit from this significant rebate,” she added.
The property industry has welcomed the announcements but added that the budget lacked real reforms despite boasting a budget surplus.
“We welcome the investment in social housing to help address the state’s housing shortage, however more needs to be done to increase housing supply in the private rental market.
“The private sector provides the vast majority of housing and issues such as stamp duty, as well as the current review of the Residential Tenancies Act and its implications, can have a material impact on the supply of rental housing,” REIWA president Damian Collins said.
“Whilst the extension of the off-the-plan rebate is welcomed, we are disappointed none of the other reforms were considered. We are particularly disappointed no consideration was given to implementing a two-stream stamp duty revenue collection method.
“The WA Government has missed a golden opportunity in the 2021-22 Budget to take advantage of the state’s enviable coffers to deliver bold housing reform that eases one of the most exorbitant cost burdens associated with home ownership.” Collins said.
