Rita Saffioti’s off-the-plan carrot aiming to convince seniors to move out and downsize

Stamp duty relief for off-the-plan apartments is set to be extended, as the Cook Government faces pressure to use a $2 billion Budget windfall to fuel housing supply. Treasurer Rita Saffioti will use a keynote speech at an Urban Development Institute of Australia event in Perth to reveal her new plan to encourage downsizing. “We are committed to ensuring every Western Australian has access to a quality home and supporting the delivery of more infill developments is key to our State’s housing future,” she said. The threshold for stamp duty exemptions for dwellings purchased off-the plan will increase $50,000 to $800,000, while properties valued above $900,000 will get 50 per cent off. For dwellings sold while under construction, the threshold for a 75 per cent concession will be increased to $800,000, tapering to a 37.5 per cent concession above $900,000. The concessions will also be extended until 2028 and expanded to new survey-strata dwellings, making duplexes and triplexes eligible. “We’re providing greater choice to buyers and making home ownership more affordable,” Ms Saffioti said. “This means older Western Australians looking to downsize can save thousands when buying a new apartment, townhouse, villa or unit off-the-plan or under construction.” The Budget sweetener will cost $70 million and comes after the latest opinion poll by DemosAU found housing was the number one concern for 34 per cent voters, ahead of cost of living, and far ahead of immigration and health. A record $2.034 billion in stamp duty revenue in the six months to December last year, as a result of surging house prices, has revived calls for the Government to do more to help desperate first homebuyers. House prices have doubled in more than 50 Perth suburbs in the past five years, as a growing population squeezed the market. There were just 2394 listings for sale in Perth in January, almost half the number that was listed a year ago. “We are focussed on measures that increase housing supply, including through changes to stamp duty that encourage downsizers to invest into new apartments and townhouses,” Housing Minister John Carey said. “These changes are a major expansion to our concessions that include new strata, including duplexes and townhouses.” Buyers will save an estimated $32,300 for an $800,000 property purchased pre-construction or $24,200 if their new home is purchased during construction. In Parliament on Wednesday, Mr Carey again accused the Liberal party of opposing density sparking an angry outburst from Basil Zempilas who urged the Speaker to intervene. “You can just make stuff up here can you,” he asked. Speaker Stephen Price called Mr Zempilas to order, one of three times he was warned during Question Time. “I’ve got a fish and I’m reeling him in,” Mr Carey said. Mr Price called the behaviour of MPs “appalling”. The Opposition has urged the Government to slash stamp duty by 20 per cent across the board. The Chamber of Commerce and Industry has previously called for stamp duty to be abolished altogether and replaced by a broad-based tax on gross rental value instead, while the Property Council of WA has called for more grants to make higher-density projects viable.