REIWA CEO Cath Hart has welcomed the introduction of the Duties Amendment Bill to Parliament. 

The Bill will see the off-the-plan duty scheme extended and lift the thresholds, as well as make changes to support greater investment by foreign developers. 

“Housing supply is the greatest challenge facing the market at the moment and we welcome actions that boost supply and also provide more housing diversity,” Ms Hart said. 

“The Bill meets the Government’s 2023-24 budget commitments and will encourage development and urban infill, creating more homes for people to buy or rent.” 

The Government has allocated $33 million to the off-the-plan duty scheme, which was due to end in October 2023. This will see it extended until June 2025. 

The rebate will be changed to a concession, meaning buyers will receive an immediate discount, rather than a rebate after settlement. 

The changes to the thresholds will see buyers receive a 100 per cent concession on properties valued up to $650,000, versus the previous $500,000 limit. From $650,000 the concession will taper down to 50 per cent for properties valued at $750,000. For properties valued over $750,000 (formerly $600,000), the 50 per cent concession will apply, capped at $50,000. 

“These changes represent significant savings for buyers and will encourage off-the plan purchases, supporting development of these projects,” Ms Hart said. 

“This will increase housing diversity and supply, providing more opportunities for people to buy a home either as a residence or investment, which will help to address the housing shortage in the rental market.”   

The Bill will also expand a duty exemption for foreign developers, again encouraging more housing supply. 

“Currently foreign developers can claim a refund of the 7 per cent foreign buyers duty when they purchase vacant land with the purpose of building 10 or more dwellings,” Ms Hart said. 

“The changes will remove the requirement for the land to be vacant, opening up more development opportunities.”