The West Australian Government has unveiled a $125 million stimulus package for the state’s home building sector, providing cash grants to prospective homebuyers.
Under the $117 million “Building Bonus” scheme, WA homebuyers — both owner-occupiers and investors — who build a new house will be eligible for a $20,000 grant.
Homebuyers who purchase a property in a single-storey development which is already under construction — such as a townhouse development — may also apply for the grant.
The scheme will not be means tested and there will be no property value caps.
The Government’s announcement comes within days of a similar scheme unveiled by its federal counterpart, which will provide grants of $25,000 for new builds or renovations by owner-occupiers who spend at least $150,000 of their own money, subject to a household income cap.
The WA grant means new homebuyers who meet income criteria for the federal package could receive $45,000 in government assistance.
That figure rises to $69,440 if the buyer is a first home owner and eligible for the existing $10,000 first home owner grant and stamp duty concession.
As part of its new package, the Government will also extend a 75 per cent stamp duty rebate — a stimulus introduced last year for off-the-plan apartments — to include apartment projects currently under construction.
This rebate — capped at $25,000 — will only be available to owner-occupiers.
The $8.2 million rebate extension brings the total value of the government’s housing package to just over $125 million.
The “Building Bonus” scheme will run for just over six months, with grants available until December 31, 2020.
