Stamp Duty cuts for off-plan apartments

Stamp duty rebates of up to $50,000 will be offered to West Australian property buyers purchasing new off-the-plan apartments.

The 75 per cent stamp duty discount would be available to people who signed a pre-construction contract to purchase a new apartment within the next two years.

For a $500,000 apartment, the change would represent a stamp duty saving of more than $13,000.

The discount will also apply to the foreign property surcharge, which the industry has long argued has caused demand from overseas buyers to plummet.

There is no purchase price cap on the policy, which has been put in place for two years, and people buying more than one unit would be eligible for multiple rebates.

Under current conditions multi-unit dwellings are pre-sold off-the-plan with stamp duty payable on the full sales price of the new dwelling, in contrast, stamp duty is typically payable on the land component only for new single-dwelling lots sales, not the separate home building contract.

Reiwa president Damian Collins said it was a significant win for property buyers and addressed this imbalance.

“By reducing the tax for off-the-plan sales, not only will it help the government to meet its target of 47 per cent of new dwellings in infill locations, but will help increase the speed of transition from apartment sales to actual construction activity,” he said.

 

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