Media Statements - $50million tax cut for Western Australians

1/01/06

A new tax cut worth about $50million comes into effect from today.

It is part of $2.4billion worth of tax cuts and family concessions announced by the Gallop Government over the past two years.

Treasurer Eric Ripper said recent changes to the Stamp Act meant that from today, owner-occupiers and small businesses could refinance their mortgages without paying stamp duty.

“This exemption will give homebuyers and small businesses the incentive to get the best deal possible,” Mr Ripper said.

“For example, a homeowner who refinances a $250,000 mortgage will save $625, while a small business owner with a mortgage of the same size will save $1,000.”

In the case of a home mortgage, the refinancing exemption also applies where the original mortgage was for the purchase of vacant land and the new mortgage is sought to build a principal place of residence.

People who purchased a dwelling as an investment property but have since made the house their principal place of residence, can also access the exemption if they refinance their mortgage on the property.

In the case of small businesses, the exemption applies where the amount outstanding on the original mortgage and the amount secured by the new mortgage are both less than, or equal to, $5million.

“The new exemption will save taxpayers about $50million over the next four years,” the Treasurer said.

The exemption only applies to the amount outstanding on the original mortgage. Further details of the refinancing exemption and application forms will soon be available on the Office of State Revenue website at http://www.osr.wa.gov.au

Treasurer's office: 9222 8788