- Cook Government introduces Duties Amendment Bill to Parliament
- Bill aimed at boosting housing supply across Western Australia
- Transfer duty rebate for off-the-plan purchases extended & converted to a concession
- Expanded criteria for refunds of foreign buyers duty to support residential developments
The Cook Government has today introduced amending legislation to Parliament to boost housing supply and encourage more buyers to purchase off-the-plan properties to encourage urban infill.
The Government committed $33 million in the 2023-24 State Budget to extend the off-the-plan transfer duty rebate and lift the concession thresholds.
The Duties Amendment (Off-the-Plan Concession and Foreign Persons Exemptions) Bill 2023 simplifies the process for receiving transfer duty support when buying off-the-plan apartments in multi-storey developments. Purchasers will receive an upfront concession on the duty payable, instead of paying the full amount of duty upfront and receiving a rebate after settlement.
The concession thresholds will also be increased for eligible contracts signed on or after
11 May 2023, to make the concession available for more purchasers and boost housing supply.
The Duties Amendment Bill will provide:
- a 100 per cent duty concession (capped at $50,000) for properties valued up to $650,000 (formerly $500,000); and
- a concession phasing down to 50 per cent of the duty (capped at $50,000) for properties valued at $750,000 or more (formerly $600,000).
The current scheme was due to expire on 24 October 2023, but has now been extended to 30 June 2025.
Existing foreign developer exemptions will be expanded to remove restrictions on the type of land eligible for a refund of foreign buyers duty if it is acquired for a residential development.
The foreign buyers duty amendments will apply retrospectively from 1 January 2023.
More information about the proposed legislation is available on the Western Australian Parliament website.
As stated by Treasurer Rita Saffioti:
“The Duties Amendment Bill delivers tax reforms and incentives to encourage urban infill and improve housing affordability.
“The Cook Government’s generous off-the-plan duty scheme gives purchasers who enter into a contract to buy a new residential unit or apartment a rebate of up to 100 per cent of the duty payable depending on the value of property, capped at $50,000.
As stated by Finance Minister Sue Ellery:
“Our focus is supply. This Bill is one of a range of important tax reforms and incentives being offered by the State Government aimed at boosting housing supply across Western Australia.
“The Bill also removes restrictions on when the foreign buyers duty exemption applies for acquisition of land that support residential developments.”
As stated by Housing Minister John Carey:
“Our Government is using every lever we can to bolster the supply of housing throughout Western Australia including through a range of tax and stamp duty reforms and incentives.
“By extending the off-the-plan duty assistance and lifting the thresholds for the concessions, we are providing opportunities for more people to purchase off-the-plan properties, which assists in getting new apartment developments off of the ground, increasing overall housing supply.”
