Stamp Duty Relief ! WA

FIRST homebuyers in WA will not have to pay stamp duty on half the cost of their new house.

The Sunday Times understands the sweetener will be the big ticket item in the May 6 State Budget – the last before the state election due in February 2005.

Under the present stamp duty rates, the tax on a $200,000 home would be cut from $7280 to $2530, a saving of $4750. ( Note– a real estate agents fees would be approx $7 500 on a $200 000 home in WA also )

The Government will strictly define the term “first homebuyer” to avoid the system being exploited.
The move will cost millions of dollars but won’t stop the Government delivering its fourth consecutive budget surplus.
It follows the NSW Labor Government’s decision this week to abolish stamp duty for first homebuyers who buy a house worth up to $500,000. The Gallop Government is understood to be wary of putting a ceiling on any tax relief – for example homes $250,000 and under – because battlers who want to buy a $260,000 home would miss out.
To avoid complaints of unfairness, the WA model is likely to scrap stamp duty on 50 per cent of the purchase price, regardless of the cost of the home.

The Government also will keep the lid on water and electricity charges and public transport fares. Any increases will be less than inflation.
The Budget is also expected to include funding to build a $345 million desalination plant in an attempt to end the state’s water crisis.

*now* if they can get REIWA to match the decrease with its Real Estate agents, buying your first home could become cheaper..

“Money is a currency, like electricity and it requires momentum to make it Effective”