Big stamp duty discount for Perth apartments

The Western Australian (WA) government has announced it will offer a substantial stamp duty rebate for off-the-plan apartment purchases in the state.

As of October 23, 2019, purchasers of off-the-plan apartments will receive a rebate of 75% of their stamp duty, capped at $50,000.

“This new Western Australian jobs initiative will drive investment into our local residential construction industry and support the WA property sector,” WA Premier Mark McGowan said.

The new stamp duty rebate is a substantial incentive for buyers to upsize, downsize or invest and is expected to boost demand, and further contribute to jobs growth in the region.
— William Mitchell, Ironfish Head of Property

Who can apply?

The rebate will be available for two years to any purchaser of a dwelling in a multi-storey apartment building – whether owner-occupier, first-home-buyer, investor or overseas buyer.

No cap will be placed on the purchase price and multiple rebates will be available to the same applicant for additional unit or apartment purchases within the same or different developments. However, the development needs to be completed within 36 months.

Overseas (FIRB) buyers will also receive a 75% rebate on the foreign buyers duty payable.

When will you receive the rebate?

Eligible applicants can apply for the rebate within 12 months from the date of registration of the certificate of title of apartment.

For example:

James enters into a pre-construction contract in January 2020 to purchase an apartment in a multi-tier development for $1,000,000.

Construction is completed in December 2021 and titles are issued in January 2022. Settlement occurs and James pays duty of $42,615.50 at the residential rate.

Three months after the settlement date, James applies for the rebate. James is paid a rebate of $31,961.62, which is 75% of the duty he paid on the contract.

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