- Stamp
duty concessions increased to help Western Australians buy their first home
- Support
now available for homes valued up to $600,000, increased from $530,000
- First
home buyers will pay no transfer duty on homes valued up to $450,000
- Reforms
will provide total savings of up to $15,390 and benefit almost 5,000 first home
buyers each year
- Part
of Cook Labor Government's $1.1 billion housing and homelessness package
The
Cook Labor Government will overhaul stamp duty concessions to help Western
Australians buying their first home, with tax cuts to benefit almost 5,000
first home buyers each year and increase the maximum value of the concession to
$15,390.
As
part of the 2024-25 State Budget, the Cook Government will increase the first
home buyers transfer duty concession threshold for established homes from
$530,000 to $600,000, and the exemption threshold from $430,000 to $450,000.
This
means Western Australians buying their first home will pay no stamp duty on
purchases up to $450,000 and will receive a concessional stamp duty rate on
properties valued up to $600,000.
Under
the new system a first home buyer purchasing a $450,000 property will pay no
stamp duty, providing a total saving of $15,390. A first home buyer purchasing a $530,000 home
will receive the maximum additional saving of $7,180 under the revised
thresholds.
The
stamp duty reforms are expected to benefit almost 5,000 first home buyers each
year, at a cost of around $20 million per annum.
The
changes will apply to agreements entered into from today, 9 May 2024.
This
is the first time the property value thresholds for the first home buyer
transfer duty concession scheme have been amended since July 2014.
The
measure forms part of the Cook Government's $1.1 billion housing and
homelessness package in the 2024-25 State Budget, to boost housing supply and
affordability across the State.
The
stamp duty concession for established homes is complementary to the State
Government's First Home Owner Grant - which provides a $10,000 payment to first
home buyers who are building a new residential property - as well as transfer
duty exemptions on vacant land for first home buyers of up to $300,000 and
concessions up to $400,000.
Comments attributed to Premier Roger Cook:
"Buying
your first home is one of life's biggest milestones, and I want every Western
Australian to have the opportunity to get into a home.
"These
sensible changes will deliver real savings for Western Australians looking for
their first home, helping to turn the dream of home ownership into reality for
thousands of people each year.
"My
Government is doing everything we can to make housing more affordable across
the State, as part of my commitment to always do what's right for WA."
Comments attributed to Treasurer Rita
Saffioti:
"This
is an important measure to assist first home buyers purchasing a home,
especially given the growth in house prices since the property value thresholds
for this scheme were last changed in 2014.
"This
additional assistance provides targeted relief to first home buyers, supporting
them in purchasing a home that will meet their needs. It may also allow first
home buyers to move out of existing rental housing, freeing up homes to rent.
"We're
doing everything we can to increase housing affordability in Western Australia,
and this initiative is one of many that we are introducing to achieve this."
Comments attributed to Finance Minister Sue
Ellery:
"Legislation to support
the increased thresholds will be introduced into the Parliament later this
month and I will make a pre-enactment determination allowing the legislation to
be applied from when the system changes are implemented.
"This will ensure
eligible purchasers benefit from these changes as soon as possible, to help
them buy their first home.
"Any first home buyers
eligible for the new thresholds who need to pay duty under the previous
thresholds at settlement can apply for a refund when the system changes are
implemented."
