THE 2021-22 State Budget lacks bold housing reform, the Real Estate Institute of WA (REIWA) said.
REIWA president Damian Collins said the institute was pleased to see a $875 million investment in social housing and a two-year extension to the off-the-plan stamp duty rebate but was disappointed the State government had not committed to stamp duty reform.
"We welcome the investment in social housing to help address the State's housing shortage but more needs to be done to increase housing supply in the private rental market," Mr Collins said.
"The private sector provides the vast majority of housing and issues such as stamp duty, as well as the current review of the Residential Tenancies Act and its implications, can have a material impact on the supply of rental housing."
The government announced it will be extending the off-the-plan stamp duty rebate until 24 October, 2023, at a reduced rate of 50 per cent (down from 75pc).
"We are pleased the off-the-plan stamp duty rebate has been extended, albeit at a reduced rate and urge the WA government to consider making this a permanent feature of the State's property tax system to ensure an ongoing pipeline of projects, a steady supply of diverse housing and to aid in the creation of jobs for Western Australians," Mr Collins said.
In the lead up to the 2021-22 WA Budget, REIWA called for four key areas of stamp duty reform to improve the efficiency and equity of the property market:
- Introduce a two-stream revenue collection method for stamp duty.
- Provide immediate $10,000 stamp duty relief for those aged 65 years and over.
- Lock in the off-the-plan stamp duty rebate.
- Remove stamp duty on the purchase of small businesses.
"While the extension of the off-the-plan rebate is welcomed, we are disappointed none of the other reforms were considered," he said.
"We are particularly disappointed no consideration was given to implementing a two-stream stamp duty revenue collection method."
WA Premier and Treasurer Mark McGowan there were "a range of measures available to homebuyers to make it more affordable for people to get a place of their own".
"We have seen enormous activity in the construction sector over the past year, which will translate to more affordable homes and more jobs," Mr McGowan said.