The changes to the stamp duty concession will impact on many first home buyers in Perth.
Here are the main points regarding the changes to the stamp duty concession for WA first home buyers:
- The first home buyer transfer duty exemption will be adjusted to provide a full exemption for home purchases of $430,000 or less, down from the current exemption of $500,000.
- The concession will then phase out between $430,000 and $530,000 (down from the current $600,000).
According the government, the new threshold better represents the value of homes being purchased by first home buyers in Western Australia.
- First home buyers will continue to be exempt from duty on purchases of vacant land valued up to $300,000, with the concession phasing out at $400,000 (unchanged from current arrangements).
- Western Australia’s first home buyer transfer duty concession still remains generous compared to other States and Territories.
Other states and territories
In all other States and Territories (other than Queensland), duty currently payable for a first home buyer of a $450,000 established home ranges from $11,382 to $20,057, compared to first home buyers in Western Australia who will pay just $3,838.
Homes located north of the 26th parallel
- First home buyers of properties valued up to $750,000 (or $1 million for those north of the 26th parallel) remain eligible for the First Home Owner Grant of $3,000 for established homes and $10,000 for new homes.
Contracts signed before July 1st 2014 won't be affected
- This measure will commence from 1 July 2014, subject to the timely passage of legislation.
Talk to one of our home loan experts at Mortgage Choice in Perth. Find out if and how the changes to stamp duty concessions will affect you.
There are a number of options available to first home buyers. We've helped many people like you realise their dream of buying their first home.
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Call in and see us at 2/337 Rokeby Rd, Subiaco WA 6008 if you have questions about LMI or want to discuss your home loan options.
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