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The Real Estate Institute of Western Australia and the Council on the Ageing have come together to campaign for transfer duty reform, to assist seniors who want to ‘right size’.
Both have welcomed Western Australia Premier Colin Barnett’s announcement yesterday that he will commit to a $15,000 transfer duty concession for seniors if he is re-elected.
REIWA President Hayden Groves said he was thrilled the Barnett government had committed to easing the burden of transfer duty for seniors.
“Transfer duty creates a significant barrier for seniors over 65 on fixed incomes who are looking to change their lifestyle or downsize,” Mr Groves said.
He said the cost of transfer duty on a median house price of $520,000 is $18,715, which is almost equivalent to the entire annual standard aged pension.
“The concession will make a substantial difference to those seniors looking to right size into more suitable accommodation, and will help address the issues of housing affordability, choice and liveability,” Mr Groves said.
Meanwhile, Council on the Ageing WA CEO Mark Teale said older West Australians want “overwhelmingly” to live in their own home, where family and friends are.
“It’s important to encourage ageing in place by providing seniors with access to appropriate housing options,” Mr Teale said.
“Our members, many of whom are on a fixed income, find the existing transfer duty arrangements to be a major barrier to right sizing, so this announcement is very positive news,” Mr Teale said.
One in three voters in WA are over the age of 60 and seniors make up 19 per cent of the state’s population.
The REIWA said if transfer duty reform, if implemented, would have a positive impact on state revenue.
It estimates that the policy reform would release 21,000 homes into the market.
The REIWA said the concession would cost the state government $303 million, but the trade-up activity would generate additional transfer to the tune of $393 million, leaving a net surplus of $90 million.
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