State Budget tax reform and incentives to boost housing supply
- 2023-24 State Budget delivers tax reform and incentives to bolster housing and land supply in WA
- Existing transfer duty rebate for off-the-plan purchases extended and expanded to deliver more housing choice - particularly at the affordable end of the market
- The Transfer duty rebate of up to 100 per cent for eligible off-the-plan apartment purchases will be provided as an upfront concession
- Initiatives support more housing and land for the regions, and further incentives for urban infill
- New and updated Keystart loan products helping more Western Australians enter the housing market
The McGowan Labor Government's 2023-24 State Budget delivers further tax reform and incentives to boost housing and land supply, encourage urban infill and improve housing affordability across Western Australia.
At an estimated cost of $33 million, the off-the-plan transfer duty concession will now be available until 30 June 2025 and the thresholds for exemptions and concessions lifted to:
- 100 per cent concession for properties valued up to $650,000 (formerly $500,000); and
- phasing down to a 50 per cent concession for properties valued at more than $750,000 (formerly $600,000).
The changes build on the State Government's continuing efforts to improve housing affordability and increase supply at the affordable end of the market, while also supporting density and vibrancy in urban areas. They will also help to smooth the pipeline of work for the construction sector beyond the current boom in activity and ensure it remains sustainable.
The Government has also made amendments to Keystart's Urban Connect pilot program, which supports medium and high-density living, that means one-bedroom apartments will now be eligible.
A new Keystart loan program will also be introduced to enable customers to secure pre-sale off-the-plan properties.
These complement State Government reforms already underway to boost housing supply throughout WA, including the $80 million Infrastructure Development Fund, which removes headworks barriers to new housing developments across WA.
As part of the 2023-24 State Budget, the State Government is also delivering $55 million in strategic water and wastewater infrastructure to unlock more than 15,000 new homes across Perth.
This investment to unlock more affordable and diverse housing is part of the McGowan Government's efforts to encourage more infill in key sites across Perth that are close to amenity and METRONET hubs and create vibrant and liveable communities.
Comments attributed to Housing Minister John Carey:
"Our Government is using every lever it can to bolster housing supply and choice throughout Western Australia.
"As part of the 2023-24 State Budget, we've made changes to Keystart's Urban Connect Home Loan product to give more Western Australians the opportunity to achieve their home ownership goals, with one-bedroom apartments now eligible under the product.
"We continue to deliver a range of important tax reforms and incentives that will provide a boost to housing and land supply, while continuing to work with industry to cut red tape.
"Our commitment in this Budget to extend the off-the-plan transfer duty rebate and lift the threshold for exemptions and concessions is a clear incentive to build new apartments, and provide more opportunity for Western Australians to downsize or buy their first home."
Comments attributed to Planning Minister Rita Saffioti:
"The extension and expansion of the off-the-plan transfer stamp duty rebate is another great initiative that will make housing more affordable and encourage greater housing choice in Western Australia.
"The expansion of the rebate programs is among a number of initiatives our Government has put in place to encourage more infill development such as our $80 million Infrastructure Development Fund and the $55 million Infill Sewerage Program.
"All of these programs will encourage more infill development, particularly in strategic locations that are close to public transport, like the 23 new train stations being delivered through our METRONET program."
Minister's office - 6552 5300