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Though the Premier has signalled the conversation is off the table, the Real Estate Institute of Western Australia (REIWA) is urging the state’s government to consider what it describes as “small, targeted reforms” to stamp duty.
The institute renewed its calls on the heels of the ACT’s announcement last week that it would toggle some of its stamp duty relief measures to widen the number of buyers eligible.
While REIWA has come out in favour of a broad reassessment of stamp duty across the state, in this instance, they are advocating only for measures to assist first home buyers, seniors, those purchasing off-the-plan or acquiring small businesses.
It’s not the first time REIWA has made some of these requests. After the 2021-22 Western Australian budget was handed down in September 2021, REIWA president Damian Collins said the government had fallen short by failing to consider “bold” measures to address housing affordability.
He followed up these calls in December by laying out the economic advantages of eliminating stamp duty in the purchase of businesses with annual revenue under $5 million.
This latest call comes ahead of the state’s next budget announcement, due in May, and advocates for four, permanent changes to stamp duty.
- Introduce a one-off, $10,000 residential stamp duty concession for those aged 65 and over.
REIWA holds that supply issues could be significantly eased by encouraging downsizing and rightsizing among the state’s seniors and is calling for a similar tax incentive as has been introduced in a number of other states and territories.
“Stamp duty concessions for seniors is not a radical idea. Victoria, Tasmania, the ACT and Northern Territory all offer seniors stamp duty concessions, there is no reason WA can’t do the same,” Mr Collins said.
“Introducing a one-off, $10,000 stamp duty concessions for seniors would ease the burden of these upfront costs and help people aged over 65 right-size into more suitable accommodation. This would free up housing stock and assist with mobility across the entire market”.
- Lock in the Off-the-Plan Duty Rebate Scheme permanently.
Introduced in 2019 as a temporary measure to incentivise the development of multi-unit dwellings, this stamp duty rebate was extended last year but is set to expire on 24 October 2023.
Mr Collins called it “precisely the policy measure that our property market needs to reduce urban sprawl” and is advocating for the scheme to be made permanent.
“If this scheme is removed, the demand for apartments will soften, which will impact the steady supply of diverse housing and reduce the creation of construction jobs in the state in the medium to longer term,” he warned.
- Remove stamp duty on the sale of small-business assets.
In this repeated plea, REIWA once again pointed to other states’ records on stamp duty relief.
“Victoria, New South Wales, Tasmanian, South Australia and the ACT have all removed stamp duty from small business sales, it is high time WA did too,” Mr Collins said.
“We are creating a business environment that is less competitive than the eastern states and placing a cost burden on small businesses which discourages productivity and the entrepreneurial spirit.
- Increase the threshold of concessional rate of stamp duty for first home buyers.
“It is important that the WA market remains accessible for first home buyers,” Mr Collins stressed in introducing RIEWA’s proposal for helping Western Australian residents onto the property ladder.
REIWA is asking the Western Australian government to lift the first home owner rate of duty (FHOR) duty-free thresholds from $430,000 to $530,000, with the concessional rate threshold lifted accordingly.
“We need to ensure that the duty-free thresholds and concessional rates for first home buyers is reflective of where the market is at,” Mr Collins said.
“We have seen strong price growth across the state over the last 18 months, so it is time to adjust the thresholds to ensure the dream of home ownership remains achievable for West Australians.”
Summing up the institute’s proposals, Mr Collins said these budgetary initiatives “would pose minimal risk for the WA government, deliver significant benefits to the economy and housing market, and ease the unfair financial burden placed on everyday West Aussies by these inefficient taxes”.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
