State election: Liberals offer incentive to older West Aussies to free up bigger homes for young families

Older West Aussies who are looking to downsize will receive a $20,000 rebate on the stamp duty payment for their new house, under a Liberal Party election policy designed to free up homes for families. Liberal leader Libby Mettam will on Saturday announce the $100 million scheme to free up more than 5000 family homes across Perth and WA to give young families the chance to raise children in homes with backyards and room to grow. The Liberals’ Downsizing Incentive Rebate will be eligible as a once-off for individuals or couples where at least one person is aged 60 or over, and where they can clearly demonstrate they are reducing their residential footprint. Homeowners will need to meet one of three criteria to be considered downsizing — the number of bedrooms, a reduction in the physical size of the home or the type of housing being moved into. They will also be able provide a statutory declaration explaining why the move represents a genuine act of downsizing to the Commissioner of State Revenue. While there is no limit on the value of the home being sold, downsizers would only be able to claim the rebate on purchased properties valued at $1.5 million or less. Perth’s median house price has risen from $595,000 at the end of last year to $730,000. For a four-bedroom home, the median price is $800,000. “This is a significant measure which will help free up larger homes for families, increasing housing supply,” Ms Mettam said. “The Downsizing Incentive Rebate will encourage a more efficient use of the homes we already have — it will help older couples move out of large homes, while helping the next generation of families with kids get into right-sized homes. “It also delivers on our commitment in our Building a Better Future policy blueprint, by making it easier for older Western Australians to downsize, if they choose to.” Shadow housing minister Steve Martin said the policy would free unused space in homes across the State. “This rebate will reduce the financial barrier that prevents older Western Australians from downsizing out of the family home once the kids have moved out,” he said. “With 2021 census figures showing that more than half of WA homes have spare bedrooms, we believe there is a significant opportunity to boost housing supply in the short term by removing a barrier to these downsizing transactions.” The policy precedes an election campaign expected to be dominated by housing, with Perth’s booming property market locking families out. The incentive joins already announced Liberal housing policies such as raising the stamp duty free threshold from properties worth $450,000 to $550,000, tapering out to $700,000. Under the Nationals’ plan, stamp duty would be waived for all first homebuyers, no matter the value of the property, or whether it is an established home or a new build, benefiting up to 20,000 families in the next four years. On a property of $680,000 — Perth’s median home price — a buyer would save $26,000 in stamp duty costs. Labor changed the stamp duty concessions for first-homebuyers in this year’s State Budget, lifting the concession threshold for established homes from $530,000 to $600,000, and the exemption threshold from $430,000 to $450,000. In partnership with Federal Labor, Premier Roger Cook used a campaign rally on Sunday to unveil a $433 million investment in new social and affordable housing across Perth, in a bid to increase supply.