The Western Australian Government recently released a significant housing stimulus package in an attempt to boost the local residential building and construction industry.
Announced on announced on 7 June 2020 by the state’s Premier Mark McGowan, the package encompasses $117 million for $20,000 Building Bonus grants, as well as $8.2 million for the expansion of the 75 per cent off-the-plan transfer duty rebate scheme.
This comprehensive housing package aims to stimulate the building industry by providing incentives for residents of Western Australia to start new building projects.
Building Bonus Grants
The $20,000 Building Bonus grants are available to eligible applicants who:
- Enter into a contract to build a new home on vacant land, or
- Enter into an off-the-plan contract to purchase a new home as part of a single-tier strata scheme between 4 June 2020 and 31 December 2020
The Western Australia Government has also extended the off-the-plan duty rebate scheme to contracts signed between 4 June 2020 and 31 December 2020 for the purchase of a new unit or apartment, in a multi-tiered development, that is already under construction.
The Building Bonus grants are not means tested, and there is no cap on the value of the property. The grants are available to owner-occupiers, investors, Australian-citizens and foreign persons, and natural persons, corporations and trustees. Plus, multiple grants can be paid to the same applicant for multiple properties, so long as each property meets the relevant grant criteria.
Western Australian Premier Mark McGowan also confirmed that interstate Fly-In Fly-Out (FIFO) workers would be eligible for the Building Bonus. The objective is to encourage these FIFO works to move to Western Australia permanently.
With over 6,000 FIFO workers living interstate and flying in and out of Western Australia regularly, if even a portion decide to capital on the government grant, it would help play a role in the state’s recovery post-COVID-19.
Total Government Incentives
When added to the Federal Government’s HomeBuilder scheme which will see some owner-occupiers receive $25,000 when building a new home, this means that Western Australians could be eligible for up $45,000 in government funding when building a new home.
In addition, first homebuyers can access the $10,000 First Home Owner Grant and first home buyer duty concession. This means that for some first homebuyers in Western Australia, the total government incentive package could save them up to $69,440.