West Australians looking to buy into the apartment lifestyle are paying the price of an imbalanced stamp duty system with many paying more around $8,000 more
than those buying under a “traditional” house and land package.
“The WA tax system is distorting the property market through different stamp duty rules that apply to those buying new single residential house and land packages and those buying apartments,” Property Council WA Executive Director Lino Iacomella said.
“Currently we have a situation where someone buying an apartment before construction is required to pay stamp duty on the full sales price of the new dwelling. This is compared to someone buying a new house and land package that is only required to pay stamp duty on the land component.”
“This is leading to apartment buyers having an unfair financial burden placed on them and is restricting the apartment market. WA needs to follow the lead of other states, like SA, Victoria and NSW, and introduce a stamp duty concession for off-the-plan apartments to bring balance to its tax system and promote much needed infill development.”
“A stamp duty concession for off-the-plan purchases will help trigger new construction activity in WA and help create vital new jobs. This type of intervention is critical at a time when WA’s jobless rate is rising.”
“Additionally, new construction will help support the Government’s infill agenda which is currently stuck in first gear – we are only seeing 30% infill when we need to be hitting 47%. Other states have recognized the stamp duty imbalance on the purchase of new dwellings and have achieved success in boosting the construction industry, creating jobs and promoting infill development by reforming the application of stamp duty on off the plan housing purchases.”
“Ahead of next year’s State election, the Property Council will be calling on both parties to commit to stamp duty reforms aimed at creating more housing diversity and creating jobs which are necessary to keep WA growing.”