Bill boosting housing supply and urban infill passes Parliament
- Duties Amendment (Off-the-Plan Concession and Foreign Persons Exemptions) Bill 2023 has passed through WA Parliament
- Bill will boost housing supply and encourage urban infill across Western Australia
- Residential developments supported by expanded criteria for refunds of foreign buyers duties
The Duties Amendment (Off-the-Plan Concession and Foreign Persons Exemptions) Bill 2023 has been passed by Parliament, simplifying the process for receiving transfer duty relief for buyers of off-the-plan residential apartments in multi-storey developments.
For contracts entered into before construction commences, the amended legislation means purchasers will no longer pay the full amount of duty upfront, waiting for a rebate after settlement – instead they will receive an upfront concession on the duty payable.
The Government committed $33 million to
extending off-the-plan transfer duty relief for
pre-construction
contracts and lifting concession thresholds in the 2023-24 State Budget, with
the current scheme now due to end on 30 June 2025, providing more time for
buyers to purchase in residential developments.
For eligible pre-construction contracts signed on or after 11 May 2023, the Bill provides:
- 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).
More purchasers will also be able to access the concession with the scheme being extended to apartments under construction for contracts signed from 31 August 2023 until 30 June 2025.
These purchasers will receive a transfer duty concession of up to 75 per cent of the concession currently available for pre-construction contracts, capped at $50,000.
Restrictions on the type of land eligible for a refund of foreign buyers duty if the land is purchased for residential development will also be removed, with these amendments applying retrospectively from 1 January 2023.
More information about the legislation is available on the Parliament of Western Australia website.
Comments attributed to Treasurer Rita Saffioti:
"The Cook Government's off-the-plan duty concessions provide apartment
buyers with some of the most generous support in the country.
"Our Government is pulling all levers available to boost housing supply
and the amendments in this Bill have been warmly welcomed by industry as
critical measures to support it in building more apartments."
Comments attributed to Finance
Minister Sue Ellery:
"We are focused on delivering tax reforms and incentives that not only
improve housing affordability and access, but also encourage urban infill.
"Removing restrictions on the foreign buyers duty exemption to support
residential developments and simplifying processes for receiving support will
also help boost housing supply."
Comments attributed to Housing
Minister John Carey:
"This Bill is a significant step towards increasing housing supply for
all Western Australians.
"The Cook Government is committed to boosting housing supply across the
State and this Bill is one of a range of important tax reforms that will help
achieve this."