Property Council WA has secured a State Government decision to offer a 75 per cent stamp duty rebate for off-the-plan apartment buyers. The change is effective immediately.
Previously the State Government's stamp duty regime favoured off-the-plan buyers of house and land packages. These buyers paid stamp duty only on the price of land. Off-the-plan apartment buyers were charged stamp duty on the full purchase price.
The State Government's new initiative - a two-year 75 per cent stamp duty rebate on off-the-plan apartments - embraces Property Council WA's advocacy on fairer tax and creates a level playing field for off-the-plan houses and apartments.
Property Council WA Executive Director Sandra Brewer said she was delighted that the State Government had taken Property Council WA's well-researched arguments on board.
"The State Government's urban growth plan is for 47 per cent infill, housing choice and well-designed density close to public transport and services," Ms Brewer said.
"Our modelling shows ending stamp duty discrimination against off-the-plan apartment buyers will stimulate construction, encouraging well-designed, multi-dwelling housing close to transport, creating vibrant communities and new jobs.
"The change will improve long-term housing affordability and encourage senior West Australians to right-size at a reduced cost.
"Under the old regime, a home buyer spending $800,000 on a house and land package on Perth's fringes paid almost $20,000 less stamp duty than an off-the-plan apartment buyer.
"The success of the State Government's Metronet station precincts depends on having a pipeline of well-designed multi-dwelling developments.
"Leveling off-the-plan stamp duty charges will encourage more home buyers to choose apartments close to transport and jobs. It improves affordability for those who are on the margins of being able to afford their own home. And it makes it less expensive for seniors wanting to right-size near well-connected centres with quality services.
"Property Council WA believes that creating an even stamp duty playing field is likely to stimulate property transactions, construction activity and employment."
Property Council WA had been advocating for fairer property taxes for many years and has consistently made the case for a more equitable application of stamp duty.
"To avoid the problems of growing cities, Perth needs to carefully plan for well-designed density around transport hubs. Well-designed urban density, as part of the State Government's Metronet strategy, is to be walking distance to public transport, close to shops and cafes and parks, playgrounds and open public space."
"There is a great opportunity in Perth to create new living spaces for the future within existing suburbs. Well-designed, integrated multi-dwelling developments can provide benefits to existing communities like safety, being able to easily get around, a sense of community and housing affordability."
"It's terrific to see the State Government encouraging housing diversity by balancing the mix of infill and greenfield development by levelling the policy playing field. Fixing this stamp duty inequity will lead to a brighter and less congested future for Perth."
Ms Brewer said a slower property market had delivered exceptionally good buying conditions.
"Now is an excellent time to consider apartment living. There is an enormous choice and range across Perth, from beach, and river locations to urban city hotspots. Apartments sold off-the-plan give people a chance to sell their home while the apartment is being built and low transactions in recent years means developers are extremely competitive and keen to do deals," Ms Brewer said.
