Legislation update

Duty relief is in sight for WA property purchasers

By Catherine Wheeler and Kellie Cook / 26 April 2022
2 min.
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Worthwhile read for: Business Owners, Commercial Tenants, Landlords

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:

  • removing duty on the grant of and other interests in prospecting licences, where the transaction does not involve any other dutiable transaction or dutiable property;
  • removing duty for service demonstrator vehicles, cancelled vehicle purchases and vehicles returned to the dealer for a full refund or replacement vehicle; and
  • exempting transfers of property under Family Court orders.

We will keep you updated as the Duties Amendment Bill 2022 progresses through the Western Australian Parliament.

If you have any queries about duty in connection with a commercial property transaction, please contact Catherine Wheeler or Kellie Cook for assistance.
 

Authors
Catherine Wheeler
Partner
Catherine is a Partner with more than 25 years’ experience in commercial practice, with a focus on property, banking and finance and local government.
Kellie Cook
Senior Associate
As a Senior Associate in our Property practice, Kellie advises clients on a large range of legal issues associated with property law.

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