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.
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.