From today, small business operators will no longer pay mortgage duty on existing loan amounts when refinancing new loans.
Small Business Minister John D’Orazio says the Government’s 2005 Budget measure will mean significant savings for small business operators and help create new jobs and opportunities for Western Australians.
“Fees and stamp duty costs are often cited by the small business sector as reasons for not changing lenders or seeking to improve financial arrangements,” Mr D’Orazio said.
“This incentive will allow small business owners greater financial freedom to change from one lending institution to another for a better financial deal or to increase borrowings.
“In turn, this increased flexibility may also result in banks and other lenders becoming more competitive in their offers to small business.”
The Minister said eligibility for the tax relief applied when the new mortgage and the amount to be refinanced on the previous mortgage was $5million or less.
“This broad eligibility criterion means a greater number of genuine small business owners will be able to access the relief,” he said.
“Businesses were paying stamp duty at the rate of 40 cents per $100, so this initiative means savings of $2,000 on a $500,000 business mortgage, up to $20,000 on a $5million mortgage.”
The mortgage duty exemption applies only to the pre-existing loan amount.
Minister's office: 9213 7150