WesternAustralia has one of the strongest economies in the world, which is why it istime stamp duty relief is provided for seniors, first home buyers, off-the-planpurchases and small businesses.
REIWAPresident Damian Collins said whilst the Premier has made it clear he had nointention of introducing major stamp duty reform during a pandemic, introducingsmaller targeted reforms would help relieve pressure on the WA housing market.
REIWAbelieves WA is in a prime position to deliver bold housing reform now, howeverwe do appreciate that these are uncertain times.
Thepandemic is not an excuse to take tax reform off the table altogether though.There are smaller, more practical reforms that if implemented would targetstamp duty without requiring a major upheaval of the states taxation system,Mr Collins said.
Inits 2022-23 pre-budget submission, REIWA is calling on the WA Government tointroduce four targeted reforms to help first home buyers and seniors and makeit easier to purchase off-the-plan properties and small businesses.
Thesereforms would pose minimal risk for the WA Government, deliver significantbenefits to the economy and housing market, and ease the unfair financialburden placed on everyday West Aussies by these inefficient taxes, Mr Collinssaid.
1. Introduce aone-off, $10,000 residential stamp duty concession for those aged 65 and over.
REIWAis calling for the WA Government to help seniors by introducing a one-time,$10,000 residential stamp duty concession for people aged 65 and over.
MrCollins said stamp duty was a major deterrent for seniors wishing to right-sizeinto more suitable accommodation, with many either struggling to raise theupfront costs or reluctant to dip into their hard-earned retirement savings tofund the move.
“Stampduty concessions for seniors is not a radical idea. Victoria, Tasmania,Australian Capital Territory and Northern Territory all offer seniors stampduty concessions, there is no reason WA cant do the same.
Introducinga one-off, $10,000 stamp duty concessions for seniors would ease the burden ofthese upfront costs and help people aged over 65 right-size into more suitableaccommodation. This would free up housing stock and assist with mobility acrossthe entire market,” Mr Collins said.
2. Lock in theOff-the-Plan Duty Rebate Scheme permanently.
REIWAis calling on the WA Government to lock in the Off-the-Plan Duty Rebate Schemepermanently.
TheOff-the-Plan Duty Rebate Scheme was introduced in 2019 to incentivisedevelopment of multi-unit dwellings by removing the unfair financial burdenplaced on buyers looking to purchase off-the-plan apartments.
Originally setto expire on 23 October 2021, the scheme was last year extended until 24October 2023.
We werepleased the WA Government decided to extend the scheme in its 2021-22 Budget,but now it is time to make this a permanent fixture of the WA taxation system,Mr Collins said.
If this schemeis removed, the demand for apartments will soften, which will impact the steadysupply of diverse housing and reduce the creation of construction jobs in thestate in the medium to longer term.
TheOff-the-Plan Duty Rebate Scheme has been very effective in promoting infill andis precisely the policy measure that our property market needs to reduce urbansprawl.
3. Remove stampduty on the sale of small business assets.
REIWAis calling for the WA Government to remove stamp duty from the sale of smallbusinesses.
MrCollins said it was disappointing that WA was one of the only places in thecountry that still imposed stamp duty taxes on small businesses.
Victoria,New South Wales, Tasmanian, South Australia and the Australian CapitalTerritory have all removed stamp duty from small business sales, it is hightime WA did too.
Weare creating a business environment that is less competitive than the easternstates and placing a cost burden on small businesses which discouragesproductivity and the entrepreneurial spirit.
Smallbusinesses need support now more than ever as WA adjusts to living withCOVID-19. It is essential that the WA Government remove this obstacle andimplement policies that boost productivity, Mr Collins said.
4. Increase thethreshold of concessional rate of stamp duty for first home buyers.
REIWAis calling for the WA Government to lift the First ³Ô¹ÏÍøÕ¾ Owner Rate of Duty(FHOR) duty-free thresholds from $430,000 to $530,000, with the concessionalrate threshold lifted accordingly.
Itis important that the WA market remains accessible for first home buyers. Weneed to ensure that the duty-free thresholds and concessional rates for firsthome buyers is reflective of where the market is at,” Mr Collins said.
Wehave seen strong price growth across the state over the last 18 months, so itis time to adjust the thresholds to ensure the dream of home ownership remainsachievable for West Australians.
