The property industry has welcomed a move by the state Labor Party to commit to increasing thresholds for stamp duty exemptions if re-elected.
The property industry has welcomed a move by the state government to expand stamp duty exemptions for first home buyers and purchasers of multi-residential dwellings if re-elected.
Premier Roger Cook today announced that a Labor government would raise the thresholds for first home buyers of established properties to $500,000, from a previous $450,000.
He added that stamp duty discounts would apply to every dollar spent after $500,000 for properties valued up to $700,000, up from a previous $600,000 in metropolitan Perth.
For regional WA, these proposed concessions would be for homes valued up to $750,000.
Stamp duty changes were also proposed new land purchases, lifting the stamp duty free threshold from $300,000 to $350,000 and the discounted rate from $400,000 to $450,000.
WA Labor also committed to a $20.8 million investment to expand the current stamp duty exemptions for new homes purchased off-the-plan and under construction.
The thresholds, which are on a sliding scale, will be lifted by $100,000 and the exemptions extended to include townhomes as well as apartments.
“We recognise the challenges first home buyers face in trying to get a foot on the property ladder, and that’s why we’re committing to this significant change if we’re re-elected," Premier Cook said.
Urban Development Institute of Australia WA chief executive Tanya Steinbeck said this was welcome new for first home buyers, given rising median house prices.
“It is critical that support is provided to those that need it most, in order to ensure more people can achieve the dream of home ownership, and the long-term security that it provides,” she said.
“These changes will save first home buyers tens of thousands of dollars, depending on the type of property they choose to purchase.
“Perth has long been considered an affordable place to buy for many home buyers, but we know that mantle is slipping, and we need to ensure that people are supported into accommodation that suits their needs and budgets.”
Property Council of Australia WA Division executive director Nicola Brischetto said the announcements represented sensible and balanced policy.
“We desperately need more apartments and townhouses built across Perth and Western Australia to house our growing population,” she said.
“Making these projects financially stack up is the biggest challenge to constructing them on a scale that Western Australia needs.
“Perth has the lowest level of medium and high-density homes of Australia’s major cities – and is one of the lowest density cities in the world.
“More apartments and townhouses built in Perth’s established suburbs will offer residents greater amenities and connectivity while taking the strain off our future public infrastructure needs.”
Master Builders Association of WA chief executive Matthew Pollock said Labor’s announcements meant both the major parties have now committed to stamp duty reform.
“Stamp duties are amongst the worst taxes a government can levy on homeowners,” he said.
“Every report on stamp duty shows it’s a bad and unfair tax that creates high economic loss, reduces labour mobility, and hits low-income households harder than high income households.
“Stamp duty is a major barrier for many families hoping to get on the property ladder and can make up as much as 20% of the upfront cost of buying a new home.
“Stamp duty is a major financial handbrake on people looking to move. It’s a barrier to attracting talent into our state, or for people to move to communities where their skills are in high demand, including the builders and tradies we need to build more homes.”
The state Liberal Party previously announced that if elected they would raise the stamp duty exemption thresholds from $450,000 to $550,000 and raise the concession threshold from $600,000 to $700,000 for first home buyers.
Real Estate Institute of Western Australia chief executive Cath Hart also welcomed the announcment.
REIWA is supportive of policies that help first home buyers get their foot on the property ladder, and measures that help them overcome the deposit gap — such as the First Home Owner Rate of Duty — play a valuable role in helping them achieving home ownership.
"Increasing the stamp duty concession thresholds will help more first home buyers access the property market," she said.
"REIWA also welcomes the increases to the thresholds for off-the-plan and under construction purchases, along with the inclusion of townhouses. This will support much needed high and medium density development."
