- REIWA calls for all political parties to formalise the off-the-plan stamp duty rebate
- The current rebate will help in the short-term, but cause hardship in the long-term
As Western Australia edges closer to the state election, calling on all political parties to formalise the stamp duty rebate for off-the-plan purchases is at the top of REIWA’s agenda list.
According to REIWA’s WA Election Submission, prior to a rebate, when a person bought an off-the-plan apartment, they paid stamp duty on the combined value of the land and build, yet a house and land package is taxed solely on the value of the land.
REIWA argues this discrepancy puts an unfair financial burden on those looking to buy off-the-plan in Perth’s outer suburbs. And while the 75% rebate for off-the-plan purchases is countering the issue in the short-term, buyers are back to being significantly disadvantaged once the program ends in October.
REIWA President, Damien Collins said it is important that the off-the-plan rebate program becomes a permanent feature of WA’s property tax system. He argues the current 75% stamp duty rebate has been essential in ensuring an ongoing pipeline of projects.
“We firmly believe that without this ongoing incentive, the demand for WA apartments will soften, impacting the steady supply of diverse housing and the creation of jobs for West Australians.
“If our state is going to continue to recover from the economic impacts of COVID-19, we need to ensure apartments remain desirable for buyers so there is a healthy supply of construction projects and jobs available.”
REIWA has made other recommendations for the state government to pursue in their official report, REIWA’s WA Election Submission (The Property Tribune has also covered parts of their submission here and here).