Bills
Duties Amendment Bill 2025
Receipt and first reading
Bill received from the Assembly and, on motion by Hon Matthew Swinbourn (Minister for the Environment), read a first time.
Second reading speech
Hon Matthew Swinbourn (Minister for the Environment) (5:32 pm): I move:
That the bill be now read a second time.
The bill amends the Duties Act 2008 to implement the Cook government's election commitments to increase the transfer duty concession for first home buyers and to expand and extend the off-the-plan duty concession. Currently, first home buyers purchasing a home pay no transfer duty on properties valued at less than $450,000 and pay a reduced rate of duty on properties valued between $450,000 and $600,000. First home buyers purchasing vacant land pay no transfer duty on land valued at less than $300,000 and pay a reduced rate on land valued between $300,000 and $400,000.
Under the proposed changes, no duty will be payable on homes valued up to $500,000, saving eligible first home buyers nearly $18,000. A reduced rate of duty will apply to homes valued between $500,000 and $700,000 inside the Perth and Peel regions, and to homes valued between $500,000 and $750,000 outside those regions. Additionally, first home buyers purchasing vacant land to build their first home will pay no duty on land valued up to $350,000, and a reduced rate of duty will apply to land valued between $350,000 and $450,000. These changes will benefit around 22,000 first home buyers over the next four years, with roughly 8,000 of them no longer paying any transfer duty when buying their first home or vacant land to build their first home.
In a further boost to housing affordability, the bill also expands the off-the-plan duty concession, which was due to expire on 30 June 2025. Under the changes, the concession will be extended to 30 June 2026. The thresholds for the off-the-plan duty concession will also be lifted by $100,000. This means that a 100% concession capped at $50,000 will be available for properties valued up to $750,000 that are purchased before construction commences. This will be an increase from $650,000. The concession will phase down to a 50% concession for properties valued above $850,000, capped at $50,000, which will be an increase from $750,000. For properties purchased while under construction, a 75% duty concession capped at $50,000 will be available for properties valued up to $750,000, which is an increase from $650,000. The concession will phase down to 37.5% for under-construction properties valued above $850,000, capped at $50,000, which will be an increase from $750,000. The off-the-plan duty concession will also be expanded to purchases of townhouses or villas in a strata or community titles building scheme for the first time. This will further boost housing density, increase housing choice and provide more options for seniors to downsize.
The changes to the first home buyers and off-the-plan duty concessions apply to purchases from 21 March 2025. To allow taxpayers the benefit from the concessions as soon as possible, the Minister for Finance will use the pre-enactment provisions in the Taxation Administration Act 2003 to allow the concessions to be considered once the revenue system changes are implemented, before the bill is passed. Any agreements entered into from 21 March 2025 that were assessed using the previous thresholds will be reassessed to take the changes into account, with a refund available for eligible buyers who settle prior to the delivery of the systems.
Pursuant to standing order 126(1), I advise that this bill is not a uniform legislation bill. It does not ratify or give effect to a bilateral or multilateral intergovernmental agreement to which the government of the state is a party; nor does this bill, by reason of its subject matter, introduce a uniform scheme or uniform laws throughout the Commonwealth.
I commend the bill to the house and table the explanatory memorandum.
(See paper 253.)
Debate adjourned, pursuant to standing orders.
