Stamp Duty Reform Key to Perth’s Future

The Property Council of Australia is calling for a change in Stamp Duty legislation to promote urban infill and help seniors transition to housing they need.

“Stamp duty is a major barrier in the housing market and it should be removed altogether with national tax reform and assistance from the federal government.  However there are some strategic reforms that the State Government can do immediately to make Perth a more liveable city for all ages,” Property Council WA Deputy Executive Director Lino Iacomella said.

 “Two immediate reforms include removing the stamp duty penalty for apartment buyers and lowering stamp duty for seniors downsizing to housing that suits their needs better,” he said.

 Currently those buying a house or apartment “off the plan” can expect to pay around $8,000 more in stamp duty than those buying under a “traditional” house & land package, where the stamp duty only applies to the land sale.

This is penalising infill development, undermining the efforts of State planning policies.

“A similar initiative introduced in Melbourne 10 years ago, has helped it to become one of the world’s most liveable cities.”

The Property Council is also calling for Stamp-Duty exemptions to be put in place, to encourage retirees to downsize into more compact homes and even retirement villages.  This would have the added benefit of releasing larger family homes to the market, making housing more affordable for young families.

“Both of the changes are essential if Perth is to meet its strategic planning objective of 47% infill development by 20,”Iacomella said.