REIWA’s wish list
No increases to State property taxes and commit to a State tax review At present, the transfer duty on a medianpriced house in the Perth metropolitan region of $520,000 is $18,715. Any increase to property taxes will diminish affordability and reduce flexibility for trade-up buyers and downsizers or resizers.
Abolish land tax aggregation.
Aggregation rules unfairly penalise investors for owning multiple properties, as investors are taxed on the total (aggregated) unimproved value of their land holdings, not on each individual property.
A 50 per cent concession to transfer duty on all off-the-plan apartment purchases.
Apartments that are sold off the plan are liable for transfer duty on the full sale price of the dwelling, while house and land packages are typically only assessed on the land component. This creates a disincentive to buy an apartment for either home ownership or investment.
An exemption to transfer duty for seniors aged over 60 when ‘right sizing’ from their primary residence.
High transaction costs, such as transfer duty, deter seniors from moving from their existing dwellings, which are usually larger homes, to ‘right sizing’ into more suitable dwellings to meet their changing needs.