Good news for downsizers! Stamp duty rebates to save apartment buyers thousands

While retirement villages and lifestyle communities used to be the go-to for those looking to downsize in retirement, nowadays there are endless options when it comes to retirement living, from renting and houseshares, to trading in your large family home for a newly-built unit. But when you commit to buying any new property, there are fees to consider, including stamp duty.

Those in the market for off-the-plan apartments in Western Australia received some good news this week though, as Premier Mark McGowan announced the introduction of a 75 per cent stamp duty rebate on Wednesday. Effective immediately, the state-wide rebate will be available to anyone signing a pre-construction contract for a home in a new multi-tiered development.

“Starting today, we’ve introduced a 75 per cent stamp duty rebate for off-the-plan apartments,” McGowan said. “It’s a measure to help stimulate the property and construction sectors, to create jobs for Western Australians.”

The scheme is set to run for two years and could potentially save buyers thousands of dollars, depending on the value of the property. For example, a first home buyer purchasing an apartment valued at $450,000 would currently pay around $3,800 in duty. The rebate will reduce this to just $960.

However it’s not just first-time buyers who can benefit from the rebates, as McGowan added: “Older Western Australians looking to downsize into a more fit for purpose dwelling will also benefit by being able to access this significant rebate.”

While there is no cap on the purchase price of the property, the amount of rebate will be capped at $50,000. However, individuals buying more than one off-the-plan property can access the rebate for each property.

Starting TODAY, we’ve introduced a 75% stamp duty rebate for off-the-plan apartments.

It’s a measure to help stimulate the property and construction sectors, to create jobs for Western Australians.

This is only possible because we got the State’s finances under control. pic.twitter.com/3LAElHjUOn

— Mark McGowan (@MarkMcGowanMP) October 23, 2019

What is stamp duty?

Stamp duty is a form of government tax that is levied on certain legal transactions, such as the sale of a house, car or when you take out an insurance policy. The amount of duty you – the buyer – are required to pay, as well as when the payment must be made, depends on which state or territory you live in.

There are some exemptions to stamp duty though, as those transferring property as a result of death or divorce are not legally required to pay the tax, as well as those who transfer property between family members. First-time buyers can also often take advantage of substantial concessions or rebates, while both Victoria and NSW have abolished stamp duty for first-time buyers who purchase properties worth up to $600,000 and $650,000 respectively.

Do other states offer stamp duty rebates or concessions?

• New South Wales – First-time buyers in NSW will no pay duty on properties worth up to $650,000, and concessions are available on homes up to $800,000.
• Queensland – In Queensland, first home buyers may be eligible for the First Home Buyers Stamp Duty Rebate. The maximum rebate they can receive is $8,750 and the outstanding stamp duty must be paid within 30 days of settlement. Those who have owned property previously may also be eligible for the state’s Home Concession, which could save you as much as $7, 175.
• Victoria – Off-the-plan buyers in Victoria can access the off-the-plan duty concession, which means buyers only pay duty on the purchase price, minus any construction and refurbishment costs. Rebates are also available for first-time home buyers, while pensioners may be able to access a stamp duty reduction.
• ACT – Some homebuyers in the ACT can pay no duty, providing all buyers are over 18, do not earn more than the income threshold, have not owned any property in the last two years and at least one buyer must live in the home continuously for 12-months.
• Northern Territory – In the Top End, pensioners and carers with the relevant concession cards can apply for $10,000 in stamp duty relief. First home buyers can also receive a discount of $23,928.60 off stamp duty when they buy an established home.
• Tasmania – Pensioners who choose to downsize can take advantage of a 50 per cent stamp duty concession, providing their new home is valued at $400 000 or lower. The same applies for first home buyers.
• South Australia – There are currently no stamp duty concessions or exemptions for first home buyers in SA, nor are there any rebates for those who purchase property off-the-plan.