Good news for state residents building or renovating homes
The Real Estate Institute of Western Australia has expressed support for new measures that extend land tax exemptions in the state.
According to REIWA CEO Cath Hart, these measures will serve as a welcome relief for individuals currently engaged in building new homes or undergoing renovations.
“The ongoing delays in the building industry have pushed completion times out significantly. This is not only putting a strain on the property market, it’s also putting a strain on people’s finances,” Hart said. “Land tax is just one of the extra costs people are facing if their home takes longer than two years to complete.”
The Cook government has announced a temporary extension to the two-year land tax exemptions, REIWA reported. This extension aims to provide some respite to those who are simultaneously managing the costs of building or renovating and the financial obligations of their current residence, such as mortgage payments or rent.
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To be eligible for the temporary extension, homeowners must have signed their building contract between July 1, 2020, and June 30, 2023. Under this extension, eligible homeowners who do not receive exemptions for another residence may now receive an exemption for the first three assessment years during the construction of their residence. In exceptional circumstances, such as builder liquidation, they may also receive an additional fourth year of exemption, according to REIWA.
For homeowners who are already receiving an exemption for a second residence, the new measures bring relief as well. They will no longer be obligated to repay two years of land tax if they are unable to meet the two-year construction timeframe. Furthermore, they may be eligible for an additional third year of exemption in exceptional circumstances beyond their control, such as delays caused by demonstrated material or labour shortages.
Homeowners who qualify for the temporary exemption and have already paid land tax will be eligible for a refund, REIWA said.
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