An upfront concession is available if you:
- enter into a pre-construction contract between 23 October 2019 and 30 June 2025 to purchase a new residential unit or apartment off-the-plan.
- enter into an under construction contract between 31 August 2023 and 30 June 2025 to purchase a new residential unit or apartment off-the-plan.
A rebate is available if you entered into a contract between 4 June 2020 to 31 December 2020 to purchase a new unit or apartment that was already under construction but not yet completed when you signed the contract.
Pre-construction contracts
Show moreConcession
As part of the 2023-24 State Budget, the off-the-plan rebate was converted to an upfront duty concession and extended for pre-construction contracts to 30 June 2025. The concession thresholds were increased for eligible contracts signed on or after 11 May 2023.
To be eligible:
- you must sign the contract between 23 October 2019 and 30 June 2025 (inclusive) to purchase a new residential unit or apartment and
- the unit or apartment must be in a multi-tiered structure where development has not commenced (off-the-plan).
If development was completed before 31 August 2023, you must meet the eligibility criteria for the rebate. If you already applied for a rebate on the contract, you’re not eligible for the concession if you:
- received the rebate or
- didn’t meet the eligibility criteria for the rebate.
Apply using Form FDA53 'Off-the-plan Duty Concession Application'.
Rebate criteria
If development was completed before 31 August 2023:
- you must sign the contract between 23 October 2019 and 30 June 2025 (inclusive).
- the contract must be to purchase a new residential unit or apartment in a multi-tiered structure where development has not yet commenced.
- the applicant(s) must be the buyer(s) named on a pre-construction contract or an eligible transferee. This includes all buyers (natural persons, corporations and trustees), including foreign buyers, who become registered on the title to the unit or apartment as an owner-occupier or an investor.
- construction must be completed within 36 months of the contract being entered into. The Commissioner considers construction to be completed when the strata plan is registered.
See the full criteria in the Pre-construction Rebate form.
Under construction contracts
Show moreConcession
To be eligible:
- you must sign the contract between 31 August 2023 and 30 June 2025 (inclusive) and
- the contract must be to purchase a new residential unit or apartment in a multi-tiered structure where development has commenced but not yet completed (off-the-plan).
If you signed your contract between 4 June 2020 and 31 December 2020, you may be eligible for the off-the-plan duty rebate.
Apply using Form FDA53 'Off-the-plan Duty Concession Application'.
Rebate
To be eligible:
- you must sign the contract between 4 June 2020 and 31 December 2020 (inclusive).
- the contract must be to purchase a new residential unit or apartment in a multi-tiered structure where development has already commenced but not yet completed.
- the applicant(s) must be the buyer(s) named on the contract or an eligible transferee. This includes all buyers (natural persons, corporations and trustees), including foreign buyers, who become registered on the title to the unit or apartment as an owner-occupier or an investor.
- construction must be completed within 36 months of the contract being entered into. The Commissioner considers construction to be completed when the strata plan is registered.
The rebate is 75 per cent of the duty paid, capped at $25,000. This doesn't include penalty tax or interest amounts paid on the transaction, or any legal or other fees incurred to recover unpaid tax.
Multiple rebates can be paid to the same applicant on separate transactions for the purchase of units or apartments in the same or different developments.
Apply by lodging Application Form FDA50 within 12 months from the date the eligible applicant is registered on the certificate of title of the unit or apartment.
You can upload and submit your application form through the Online Services Portal (under Duties Administrative Requests).
Concession amounts
Show moreThe date the contract was signed determines:
- whether the transaction meets the eligibility requirements and
- the amount of the rebate or concession.
Use the online calculator to determine how much duty is assessed and how much concession is applied.
| Date contract entered into (dates are inclusive) |
Value of new residential unit or apartment | Amount |
|---|---|---|
| 23 October 2019 to 23 October 2021 |
75 per cent of the duty paid or payable, capped at $50,000 | |
| 24 October 2021 to 31 May 2022 |
50 per cent of the duty paid or payable, capped at $50,000 | |
| 1 June 2022 to 10 May 2023 |
$500,000 or less | 100 per cent of the duty paid or payable, capped at $50,000 |
| more than $500,000 but less than $600,000 | between 100 per cent and 50 per cent of the duty paid or payable, capped at $50,000. The 100 per cent rebate reduces at a rate of 0.05 per cent for every $100 in dutiable value that exceeds $500,000 | |
| $600,000 or more | 50 per cent of the duty paid or payable, capped at $50,000 | |
| 11 May 2023 to 30 June 2025 |
$650,000 or less | 100 per cent of the duty paid or payable, capped at $50,000 |
| more than $650,000 but less than $750,000 | between 100 per cent and 50 per cent of the duty paid or payable, capped at $50,000. The 100 per cent rebate reduces at a rate of 0.05 per cent for every $100 in dutiable value that exceeds $650,000 | |
| $750,000 or more | 50 per cent of the duty paid or payable, capped at $50,000 |
| Date contract entered into (dates are inclusive) |
Value of new residential unit or apartment | Amount |
|---|---|---|
| 31 August 2023 to 30 June 2025 |
$650,000 or less | 75 per cent of the duty paid or payable, capped at $50,000 |
| more than $650,000 but less than $750,000 | between 75 per cent and 37.5 per cent of the duty paid or payable, capped at $50,000. The 75 per cent rebate reduces at a rate of 0.0375 per cent for every $100 in dutiable value that exceeds $650,000 | |
| $750,000 or more | 37.5 per cent of the duty paid or payable, capped at $50,000 |
Apply for a concession
Show moreLodge Application Form FDA53 with your transaction record (contract) by:
- providing it to your conveyancer/legal practitioner or
- uploading and submitting your application through the Online Services Portal (under Duties Administrative Requests).
Apply within 12 months from the date you are registered on the certificate of title of the unit or apartment. Late applications won’t be accepted.
Eligible conveyancers and legal practitioners can self-assess the duty concession using Online Duties.
Developers - extending the construction timeframe
Show moreAfter construction has been completed, you can apply to the Commissioner to extend the 36-month timeframe to complete construction. The Commissioner's decision to exercise discretion in relation to a specific development will apply to all eligible applicants acquiring a unit or apartment in that development.
Each application will be considered on its merits and must be supported by evidence from the developer detailing why construction was not completed within 36 months of the contract being entered into. The Commissioner will generally extend the 36 month period if:
- rebate scheme timelines weren’t met because of development delays due to pre-development sales requirements and the scale of construction or
- completion is delayed due to issues outside the developer’s control, such as being unable to procure materials or labour.
The following applications to extend the construction timeframe have been approved:
- ONE Subiaco apartment complex (10 Rokeby Rd, Subiaco) - timeframe extended by 31 days. Contracts entered into between 23 October 2019 and 23 November 2019 are within the construction completion timeframe.
- Sanctuary Mount Pleasant apartment complex (3-5 Wren St, Mount Pleasant) - timeframe extended by 10 months. Contracts entered into between 23 October 2019 and 14 August 2020 are within the construction completion timeframe.
- Aviator Kewdale apartment complex (173-175 Wright St, Kewdale) - timeframe extended by 7 months. Contracts entered into between 23 October 2019 and 23 May 2020 are within the construction completion timeframe.
- Foundry Leederville apartment complex (636 Newcastle St, Leederville) - timeframe extended by 6 months. Contracts entered into between 23 October 2019 and 18 April 2020 are within the construction completion timeframe.
Reassessments
Show moreTransactions may be reassessed to take into account any rebate amount.
If an eligible contract is reassessed, the amount of duty payable by the taxpayer, or refund due to them, will be adjusted to take into account any rebate amount paid or payable as a result of the reassessment.
Example
Sally enters into a contract to purchase an apartment under construction for $440,000 on 17 November 2020. The construction is completed and titles are issued within 36 months of the contract date. Sally pays duty of $14,915 at the residential rate and becomes the registered owner of the apartment.
Sally applies for the rebate of 75% which is $11,186.25.
Sally then applies for the first home owner grant and a reassessment of the duty at the first home owner rate of duty.
| How the reassessment at the FHOR is calculated | |
|---|---|
| Assessment | |
| Duty amount (A) | $14,915 |
| Rebate (B) | $11,186 |
| Reassessment | |
| New FHOR duty amount (C) | $1,919 |
| Adjusted rebate (D) | $1,439.25 |
| Refund | |
| Decrease in duty payable (A-C) | $12,996 |
| less decrease in rebate paid (B-D) | $9,746.75 |
| Refund | $3,249.25 |
Examples
Show morePre-construction contract - concession
Example 1
Maria enters into a contract to purchase a new apartment in a multi-tiered apartment complex that is yet to commence construction.
Maria signs the contract on 12 May 2023 for $630,000 and provides the contract and application form for the duty concession to her conveyancer who lodges and self-assesses the duty in Online Duties.
Maria is eligible for 100% concession on the duty payable and is not required to pay any duty on the purchase of the new apartment prior to settlement.
Example 2
Sean enters into a contract on 1 February 2020 to purchase a new apartment in a multi-tiered apartment complex that is yet to complete construction.
Before settlement, Sean decides to put the apartment in the name of a newly formed company as trustee for a new discretionary trust. Sean pays the additional duty on the transfer of land as the trustee is not eligible for relief under the substituted purchaser provisions of the Duties Act 2008 (section 42). He then applies for the rebate on the contract after settlement.
Sean is not eligible for the rebate as he isn’t registered on the title and the trustee isn’t an eligible substituted purchaser.
Sean later hears about the new off-the-plan duty concession and applies for a reassessment of the duty he paid on the contract. Sean is not eligible for the concession either as he didn’t meet the eligibility criteria when he previously applied for the rebate.
Under construction contract - concession
Example
Jasmine enters into a contract to purchase a new apartment in a multi-tiered apartment complex that has commenced but not yet completed construction.
Jasmine signs the contract on 1 September 2023 for $650,000 and provides the contract and application form for the duty concession to her conveyancer who lodges and self-assesses the duty in Online Duties.
The transfer duty payable on a purchase price of $650,000 is $24,890. Jasmine is eligible for a 75% concession on the duty payable. She is only required to pay duty of $6,222.50 on the purchase of the new apartment prior to settlement.
Under construction contract - rebate
Example 1
Sally enters into a contract on 15 June 2020 to purchase an apartment for $1,000,000 that is currently under construction.
Construction is completed in February 2021 and the titles are issued in March 2021. At settlement Sally pays duty of $42,615.50 at the residential rate of duty. Sally is registered on the certificate of title in March and applies for the rebate in April.
Sally is paid a rebate of $25,000 which is the maximum capped amount available for purchases of apartments under construction.
Example 2
John purchases a newly completed apartment in a multi-tiered development on 30 June 2020 from Mary who had entered into a pre-construction contract two years ago with the developer.
The apartment has never been resided in.
John applies for the duty rebate but is not eligible for the rebate as construction had already been completed when he entered into the contract to purchase the apartment from Mary.
Announcements
Off-the-plan Duty Concession and Rebate Scheme
