The McGowan Labor Government is investing in the residential construction industry, with a stamp duty rebate to help stimulate the property and construction sectors.
From today, buyers who sign pre-construction contracts to purchase a new residential unit or apartment in a multi-tiered development will be eligible for a 75 per cent transfer duty rebate of up to $50,000.
The rebate will be available for two years to any purchaser of a dwelling in a multi-tiered development. No cap will be placed on the purchase price and multiple rebates will be available to the same applicant for additional unit or apartment purchases within the same or different developments.
This rebate builds on the generous stamp duty assistance that is already available to first home buyers in WA. For example, a first home buyer purchasing an apartment valued at $450,000 would currently pay around $3,800 in duty. The rebate will reduce this to just $960.
Older Western Australians looking to downsize into a more fit for purpose dwelling will also benefit by being able to access this significant rebate.
As a result of responsible financial management, the McGowan Government is able to introduce the rebate and make it significantly more affordable for buyers to invest in off-the-plan developments.
The rebate will apply for two years and is estimated to cost the Budget $29 million, bringing the total investment in recent weeks to stimulate the WA economy to $364 million.
Full details of the scheme are available on the Department of Finance's website.
As stated by Premier Mark McGowan:
"My number one priority will always be creating WA jobs.
"This new WA jobs initiative will drive investment into our local residential construction industry and support the WA property sector.
"Effective immediately, it's another targeted measure to help stimulate our economy, which we can afford to do because we got the finances under control."
As stated by Treasurer Ben Wyatt:
"This scheme not only offers incentives for investment within Western Australia but will also promote job opportunities for the WA construction industry.
"Infill helps to drive a number of important outcomes for the people of Western Australia, including more affordable housing, a better environment, revitalised shopping precincts and stronger communities.
"The McGowan Government is in the position to be able to stimulate the economy because we have responsibly managed the finances and are now able to take this action while still having debt declining."
As stated by Planning Minister Rita Saffioti:
"Promoting urban infill and residential developments in close proximity to METRONET will not only deliver immediate economic benefits, it will have a positive effect for decades to come."
As stated by Housing Minister Peter Tinley:
"This McGowan Government initiative supports a valued industry that delivers ongoing economic prosperity for this State, while also improving affordability for people looking to purchase an apartment."
| First Home Buyer | | | |
| Price | Current duty | New duty |
Saving |
| $ | $ | $ | $ |
| 400,000 | 0 | 0 | 0 |
| 450,000 | 3,838 | 960 | 2,879 |
| 500,000 | 13,433 | 3,358 | 10,075 |
| 550,000 | 20,140 | 5,035 | 15,105 |
| 600,000 | 22,515 | 5,629 | 16,886 |
| 650,000 | 24,890 | 6,223 | 18,668 |
| 700,000 | 27,265 | 6,816 | 20,449 |
| 750,000 | 29,740 | 7,435 | 22,305 |
| 800,000 | 32,316 | 8,079 | 24,237 |
| General Domestic Buyer | | | |
| Price | Current duty | New duty |
Saving |
| $ | $ | $ | $ |
| 300,000 | 8,835 | 2,209 | 6,626 |
| 400,000 | 13,015 | 3,254 | 9,761 |
| 500,000 | 17,765 | 4,441 | 13,324 |
| 600,000 | 22,515 | 5,629 | 16,886 |
| 700,000 | 27,265 | 6,816 | 20,449 |
| 800,000 | 32,316 | 8,079 | 24,237 |
| 900,000 | 37,466 | 9,366 | 28,099 |
| 1,000,000 | 42,616 | 10,654 | 31,962 |
| 1,500,000 | 68,365 | 18,365 | 50,000 |
