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Damian Collins is calling for the Western Australian government to introduce one-off $10,000 stamp duty concessions for residents aged 65 and above.
In its 2022-23 pre-budget submission, the Real Estate Institute of Western Australia (REIWA) has requested the burden be eased for the state’s seniors, arguing individuals over the age of 65 are “especially affected” because of their reduced income, limited borrowing capacity, and more specific housing needs,
In his capacity as REIWA president, Mr Collins said that “introducing a one-off, $10,000 stamp duty concessions for seniors would ease the burden of these upfront costs and help people aged over 65 right-size into more suitable accommodation. This would free up housing stock and assist with mobility across the entire market.”
He raised that older households “often struggle to raise the upfront cost of stamp duty which prevents them from moving into housing that is more appropriate for their needs”.
In addition, “many are also reluctant to dip into their hard-earned retirement savings to fund the move”.
“The prospect of paying tens of thousands in upfront transaction costs is a clear deterrent when the alternative is simply remaining in the place they call home,” the president conceded.
According to analysis from the REIWA, the one-off concession could increase mobility to the point where it is “easily” cost-neutral – and may even net the state government higher revenue.
“While many will choose to remain in the family home, we expect introducing a one-off stamp duty concession for seniors will be the encouragement many need to right-size, providing our housing market with some much-needed mobility,” he said.
Arguing the proposal “is not a radical idea”, Mr Collins pointed out that Victoria, Tasmania, ACT and Northern Territory all offer stamp duty concessions to eligible seniors.
“It’s time that WA does too,” he said.
Despite an ageing population – and a rising need for single-occupancy, low-maintenance dwellings, Mr Collins highlighted that it remains the case that more than seven in 10 listings for sale in Western Australia are for dwellings with three or more bedrooms.
“While many first home buyers are turning to townhouse and apartment living on affordability grounds, more needs to be done to slow the sprawl and to encourage the population into higher density living,” he advised.
It’s not the first time that the REIWA has toyed with the idea that the state’s stamp duty system needed a shake-up.
Just last month, the idea of a one-off concession for seniors was brought up alongside three other “minimal risk” reforms for stamp duty in the state. Those other reforms included: making the current off-the-plan duty rebate scheme permanent, removing stamp duty on the sale of small business assets, and increasing the threshold limits for concessional stamp duty for first home buyers.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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