In a stunning move announced on 23 October 2019, the Western Australia government announced a stamp duty rebate scheme of 75%. It aims to boost construction activities and in turn, create jobs.
Why the stamp duty rebate scheme?
The government hopes to increase property purchases and investments by providing a rebate of 75% of the stamp duty payable. It will then add construction activities and achieve its aim of job stimulation.
Who and what properties are eligible?
Owner occupiers and investors including foreign non-residents are eligible for this scheme. They must enter into a pre-construction contract between 23 October 2019 and 23 October 2021 (inclusive) to purchase a new residential unit or apartment. Resale residential and those under construction properties are not eligible, as well as land and construction. Commercial properties are excluded too. Remember, the scheme aims to spur new jobs for new constructions.
How much is the rebate?
The rebate amount is 75 per cent of the duty paid, capped at a maximum of $50,000. The rebate applies to both transfer duty and foreign buyers duty surcharge (if applicable) paid on the agreement by the purchaser(s) to purchase the unit or apartment.
The good news is there is no cap on the purchase price or value of the unit or apartment, as long as the rebate does not exceed $50,000.
We have worked out the rebate and the net stamp duty payable for foreign non-residents.
Table: stamp duty payable for foreign non-resident buyer of apartments in WA
|Price||Current duty||Foreign duty (7%)||Total duty||75% rebate, capped at $50k||New duty||Saving %|
In a nutshell, buyers of pre-construction apartment developments between 23 October 2019 and 23 October 2021 (inclusive) will receive stamp duty rebate of 75%, up to $50,000.
When do you receive the rebate?
You are required to lodge Application Form FDA49 within 12 months from the date the eligible applicant is registered on the certificate of title of the unit or apartment.
What financing is available to foreign non-residents?
Singapore banks and Australia lenders are lending to foreign non-residents. As of 4 November 2019, terms in Singapore start from 3.08% rate and up to 70% LTV for apartments, townhouses be it off-plan or resale. In Australia, terms start from 4.59% rate and up to 70% LVR for completing apartments, townhouses, and land and construction. Bookmark this page to check out the available rates. Make an appointment with our Australia mortgage consultant for an assessment of your borrowing options.