The Western Australian Budget 2024-2025 was delivered on 9 May 2024 and includes a tax-related proposal.
The Western Australian Budget 2024-2025 was delivered on 9 May 2024 and includes the following tax-related proposal.
Under the housing package initiative, increased transfer duty assistance for first home buyers would be in the form of an increase in the stamp duty exemption threshold to $450,000* (from $430,000) for purchases of established properties, and the maximum property value threshold for a concessional rate of duty increasing from $530,000 to $600,000.
In addition, to incentivize owners of vacant properties to bring these homes into the long-term rental market, property owners would receive a $5,000 grant to make their property available for long term rental under the Vacant Property Rental Incentive Scheme.
While not part of the budget, on the same day, the Land Tax Assessment Amendment (Build-to-Rent) Bill 2023 (introduced on 17 May 2023) passed the Legislative Council (on 9 May 2024) and is now awaiting Royal Asset.
The build-to-rent exemption aims to increase the availability of rental properties in Western Australia by providing a 50% exemption from land tax for up to 20 years for eligible developments (i.e., developments completed between 12 May 2022 and 1 July 2032 that contain at least 40 self-contained dwellings satisfying certain requirements).
The exemption is available from the 2023-2024 assessment year and is similar to land tax relief offered in the Eastern States.
Upon Assent, the operative provisions of the Bill will be effective retroactively from 1 July 2023.
Dorian Beaver | dorianbeaver@kpmg.com.au
Primrose Mroczkowski | pmroczkowski@kpmg.com.au
Branden Hang | bhang1@kpmg.com.au
*$ = Australian dollar