A Mettam Liberal Government will introduce a new scheme to directly boost housing supply in the established housing market, by making a $20,000 rebate on transfer duty available to older Western Australians who wish to downsize into housing that is right for them.

Libby Mettam, WA Liberal Leader, said the scheme is part of the WA Liberal’s commitment to help families get into homes, helping end WA Labor’s housing crisis.

“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 was one of the ways the WA Liberals will improve the outlook for those caught in the housing crisis, unable to find a home or facing significant housing costs driven by low supply.

“There is no silver bullet to the housing crisis, but WA Labor is out of ideas, rolling out half-measures less than 100 days before the election after nearly eight years in power.

"Our commitment on housing is clear. Under a Mettam Liberal Government, more homes will be built, and more help will be provided to Western Australians caught up in the housing crisis.”

“We’ve announced a significant stamp duty concession of up to $15,000 for first home buyers, a $500m Housing Infrastructure Investment Fund to unlock land and enable construction of 100,000 homes, and we’re continuing to roll out further housing-related tax relief with this policy.

“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.

“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 Downsizing Incentive Rebate will be available as a once-off for individuals or couples where at least one person is aged 60 or over.

Up to $20,000 in transfer duty paid will be able to be refunded via the Office of State Revenue on the purchase of a home that represents a choice to downsize.

To be eligible, the home purchase must take place within one year of the sale of the applicant’s previous Western Australian primary residence of two years or more and be intended to be lived in as the applicant’s new primary residence for a minimum of two years.

As is the case with the existing rules for the first homeowners’ grant, unexpected extenuating circumstances will be able to be considered in the event that a planned primary residence occupancy is unable to be met.

The dutiable value of the new home must not exceed $1.5 million, with no price limit on the original home sold.

Applicants will also be required to demonstrate the move represents a genuine act of downsizing, by choosing one of three pre-set methods for automatic approval, or by providing a statutory declaration explaining why the move represents a genuine act of downsizing to the Commissioner of State Revenue.

$100 million has been allocated to the program, to encourage over 5,000 households to engage in property transactions that add to the availability of larger homes for families in Western Australia.

"Despite the housing crisis, the Cook Labor Government have been content to stockpile rising stamp duty revenue and funnel it into pet projects, like METRONET,” said Mr Martin

“Western Australians will keep more of their own money in their pockets under a lower-taxing Liberal Government.”