Apartments under construction to get stamp duty discounts as State Government pushes for faster builds

Recently (October 10), there's good news from the Western Australia real estate market. The Western Australia government announced that from today until the next two years, buyers of apartments or multi-level residential units under development, including foreigners, will enjoy a stamp duty concession of up to 75%.

When the value of new apartment is $650,000 or less, duty concession amount is 75 % of the duty paid or payable, capped at $50,000.
When the value of new apartment is more than $650,000 but less than $750,000, duty concession amount is 75% rebate reduces at a rate of 0.0375 % for every $100 in dutiable value that exceeds $650,000
When the value of new apartment is $650,000 or less, duty concession amount 37.5% of the duty paid or payable, capped at $50,000

Since the Western Australia government introduced stamp duty reforms targeting the local housing crisis in 2019, the policy has been continually extended and the incentives enhanced to revitalize the construction industry and meet the growing housing demand in the region. The major change in this policy is the inclusion of apartments that are under construction but not yet completed, in the range of properties eligible for stamp duty concessions.

According to the latest Western Australia policy, if you are planning or have already purchased eligible apartments or units within the specified time frame, you may qualify for a one-time stamp duty concession or a refund of previously paid stamp duty.

Requirements for Concession and Refund Eligibility:

The contract must be for the purchase of a new residential unit or apartment in a multi-level structure that has not yet commenced development (i.e., off-the-plan), excluding commercial properties.
The applicant(s) must be the buyer(s) named in the pre-construction contract or an eligible transferee. This includes all buyers (natural persons, corporations, and trustees), including foreign buyers, who are registered on the property title of the unit or apartment as owners or investors.
The construction of the purchased new residential unit or apartment must be completed within 36 months of the contract being signed.
Multiple rebates can be applied to the same applicant for transactions involving the purchase of units or apartments in the same or different development projects.
There is no limit on the value of the purchased units or apartments.
Eligible applicants must submit the application within 12 months from the date they are registered as owners of the purchased apartment or unit on the property certificate.

Application period:

Eligible applicants can submit the application within twelve months from the date of obtaining the property title for the purchased apartment. For purchasing off-the-plan apartments that have not commenced construction, submit Form FDA53. For purchasing off-the-plan apartments that have commenced construction but are not yet completed, the latest application form has not yet been officially released by the authorities. Please stay updated by visiting the official website provided at the end of this article.

Source: https://www.wa.gov.au/service/financial-management/taxation-and-duty/apply-the-plan-duty-concession-or-rebate