The McGowan Government will today introduce the Duties Amendment Bill 2022 which will reduce duties for some taxpayers and simplify tax administration, delivering on an election commitment to reduce red tape.
The 2022-23 State Budget will include an estimated $7.3 million to cover the tax savings of some Western Australians over the next financial year.
The proposed amendments in the Bill will:
- reduce the rate of duty for non-residential property and reduce red tape for settlement agents and conveyances;
- amend the transfer duty concession available for small business and residential property transfers to ensure it continues to provide lower rates of duty on assets valued at less than $200,000;
- remove duty on certain transactions for prospecting licences;
- remove duty for service demonstrator vehicles, cancelled vehicle purchases and vehicles returned to the dealer for a full refund or replacement vehicle; and
- exempt Family Court orders from duty.
A key measure in the Bill is the reduction of the general rate of duty for non-residential property from July 1, 2022 to align it with the residential rate.
The change will benefit purchasers of non-residential property, such as commercial property, vacant land and business assets, valued at more than $200,000. A person buying non-residential property valued at $725,000 or more will save $2,800 duty under the reduced rate.
The change to the small business and residential property transfer duty concession will provide up to an additional $480 in duty relief for small business and principle place of residence transfers of less than $200,000.
Red tape and inefficiencies relating to prospecting licences will also be reduced. From July 1, 2022, certain transfers of prospecting licenses can be registered with the Department of Mines, Industry Regulation and Safety without being lodged for duty assessment.
The vehicle licence duty has been reviewed to better align with industry practice. An exemption will apply where a vehicle purchase is cancelled prior to a purchaser taking possession of the vehicle, or the vehicle is returned for a full refund or replacement vehicle.
New car dealers registering service demonstrator vehicles will also not be required to pay duty.
The Bill aligns duty relating to Family Court orders with financial agreements made under the family law legislation. Nominal duty currently payable on the Family Court order itself will be removed.
As stated by Finance Minister Dr Tony Buti:
“The Duties Amendment Bill 2022 is another McGowan Government commitment to reducing red tape and simplifying taxes for Western Australians and businesses.
“No taxpayers will be worse off under these changes and we expect Western Australians will save around $7.3 million in duty, next financial year.
“The McGowan Government is pleased to reduce the tax burden for some taxpayers and simplify tax administration.
“This will also bring a number of tax processes in line with industry practices.”
