West Australian off the plan apartment stamp duty rebate gets two year extension
The West Australian State Budget offered a rebate of up to $50,000 of transfer duty for buyers who sign pre-construction contracts for a residential apartment in multi-tiered strata.
Originally due to expire in October 2021, the scheme has been extended a further two years.
The WA Government announced they will be extending the off-the-plan stamp duty rebate until 24 October 2023.
But it is at a reduced rate of 50 per cent (down from 75 per cent).
The scheme will now operate for pre-construction contracts entered into between 23 October 2019 and 24 October 2023.
The rebate amount is for a pre-construction contract between 23 October 2019 and 23 October 2021 (inclusive) to purchase a new residential unit or apartment in a multi-tiered development - 75 per cent of the duty paid, capped at a maximum of $50,000;
for a pre-construction contract between 24 October 2021 and 24 October 2023 (inclusive) to purchase a new residential unit or apartment in a multi-tiered development - 50 per cent of the duty paid, capped at a maximum of $50,000.
The 2021-22 State Budget includes a $26.2 million allocation for the rebate extension.
The rebate amount had since inception been the equivalent to 75% of the transfer duty paid and capped at $50,000 for units that have yet to begin construction and $25,000 constructions that are underway.
There was no cap on the purchase price and the scheme can be accessed by buyers who already own property.
REIWA President Damian Collins said the Institute was pleased to see the two-year extension to the off-the-plan stamp duty rebate.
"We are pleased the off-the-plan stamp duty rebate has been extended, albeit at a reduced rate, and urge the WA Government to consider making this a permanent feature of the states property tax system to ensure an ongoing pipeline of projects, a steady supply of diverse housing and to aid in the creation of jobs for West Australians," Mr Collins said.
The mining state posted a $5.6 billion surplus for the 2020-21 financial year, which was $2.5 billion more than anticipated given royalties paid by its iron ore sector.
WA’s prior biggest surplus was $2.7 billion in 2007.