Duty relief is in sight for WA property purchasers
Property buyers in Western Australia may get the benefit of lower rates of duty thanks to a new Bill to amend the Duties Act 2008 (WA) recently introduced into WA Parliament.
A significant change for commercial property transactions is the proposed reduction to the rates of duty for property intended to take effect from 1 July 2022. This change is intended to benefit purchasers of non-residential property, (including commercial property, vacant land and other business assets) with the government estimating that duty for a purchase valued at more than $200,000 will be reduced. For non-residential property valued at $725,000 or more, this represents a duty reduction of up to $2,800.
The Duties Amendment Bill 2022 also proposes a lower concessional rate of duty on assets valued at less than $200,000 for both residential land and business property. This could provide additional cost savings for small businesses.
The switch to a single rate of duty for residential and business property is intended to lessen the administrative burden on purchasers and their agents, as residential purchasers will no longer need to complete an application for the residential rate of duty.
Other amendments proposed by the Duties Amendment Bill 2022 to the current Duties Act 2008 (WA) include:
We will keep you updated as the Duties Amendment Bill 2022 progresses through the Western Australian Parliament.