Stamp duty rebate extension for off-the-plan apartments and units: Everything you need to know
The recently announced Western Australian State Government’s 2021-22 State Budget included a series of measures to increase housing availability.
An important inclusion in these announcements was an extension of the Off-the-Plan Duty Rebate Scheme.
What is the stamp duty rebate extension for strata properties?
Buyers who sign pre-construction contracts to acquire a new residential unit or apartment in a multi-tiered strata development will now be eligible for a 50 per cent transfer duty rebate, up to $50,000.
This extension goes into effect from 24 October 2021 and is available until 24 October 2023 (inclusive).
Pre-construction contracts for homes in multi-tiered strata projects are currently eligible for a 75 per cent refund, up to $50,000, until 23 October 2021.
What is the stamp duty rebate for?
According to the to WA State Government, the Off-the-Plan Duty Rebate Scheme promotes investment in off-the-plan properties and encourages housing availability for first home buyers and downsizers in the WA residential multi-tiered apartment market.
It is also intended to stimulate job growth in the construction industry.
How long is the stamp duty rebate extension for?
The rebate was extended by two (2) years for new residential units or apartments in a multi-tiered strata development, until 24 October 2023 (inclusive).
The positive impact of stamp duty rebate extension
We welcome this rebate extension. While the announcement by the State Government could have gone further by not reducing the rate, the extension will nonetheless have a demonstrably positive impact for WA.
The rebate’s extension will contribute to an increased new dwelling supply in WA, as well as a diversification of locations and property types available to investors, home owners and tenants alike.
Our expectation is that this will help WA’s rental affordability with a correction of the current low vacancy rates while looking forward to a post-pandemic economy with open state borders and more movement to WA from interstate and abroad.
Importantly, this rebate extension will also attract more property investors to the WA market, sighting the cashflow benefits of a new build and the property’s appeal to the tenant prospect market.
Is the stamp duty rebate scheme the same as the Commonwealth Government’s Homebuilder Scheme?
The stamp duty rebate scheme is different to the Commonwealth Government’s HomeBuilder Program.
If you receive the stamp duty rebate, you may still be eligible for the HomeBuilder grant, for contracts signed prior to April 2021.
What about the Building Bonus grant?
The Building Bonus grant scheme is separate to the stamp duty rebate scheme.
Buyers who enter into a pre-construction contract to build a new home in a single-tier development may be eligible for the Building Bonus grant.
Want to discuss how the stamp duty rebate extension affects you?
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