The Western Australian Government, under Premier Roger Cook, has announced an innovative $5,000 incentive aimed at transforming vacant properties into long-term rental homes. This initiative is part of the 2024-25 State Budget and reflects the government’s ongoing efforts to address the state’s housing shortage.
Details of the Vacant Property Rental Incentive Scheme
The new $5 million Vacant Property Rental Incentive Scheme offers $5,000 payments to owners of up to 1,000 vacant properties, encouraging them to lease these properties on a long-term basis. To qualify, property owners must provide a minimum 12-month lease agreement. Payments are disbursed once the property is leased and occupied.
To be eligible for the incentive, properties must:
- Have been vacant for at least six months.
- Be a single, self-contained unit with its own bathroom, kitchen, and toilet (spare rooms and ancillary buildings like granny flats are not eligible).
- Have not received payments under the Short-Term Rental Accommodation (STRA) Incentive Scheme.
Properties must remain tenanted for the full 12-month lease period. If a lease is broken, the property must be re-let within six weeks to avoid repayment of the grant.
Government Officials’ Comments
Premier Roger Cook highlighted the importance of this initiative:
“Western Australia’s nation-leading economy and attractive lifestyle are driving significant demand for housing, so we are leaving no stone unturned in our work to boost the supply of homes.”
Cook emphasized that the 2024-25 State Budget includes various measures to increase housing availability, including the Vacant Property Rental Incentive Scheme and ongoing support for construction apprentices.
Treasurer Rita Saffioti stated:
“This initiative has the potential to bring up to 1,000 properties back onto the rental market that would otherwise be sitting vacant and unused and, most importantly, could support up to 1,000 Western Australian households to find a long-term rental.”
Saffioti encouraged eligible property owners to consider this opportunity, stressing the government’s commitment to easing housing market pressures through innovative policies.
Commerce Minister Sue Ellery noted:
“The Vacant Property Rental Incentive Scheme is the latest in a series of initiatives by the Cook Government to increase housing stock across Western Australia.”
Ellery underscored the success of the $10,000 STRA Incentive Scheme and expressed optimism about further boosting rental supply with the new scheme.
Planning and Housing Minister John Carey added:
“Our Government continues to think outside the box and look at a range of measures, not just to provide new housing, but to better utilize existing stock to boost housing supply across the continuum.”
Carey pointed out that this measure complements other initiatives, including stronger regulations for short-term rentals and the $10,000 incentive for STRA property owners.
Conclusion
The $5,000 Vacant Property Rental Incentive Scheme is a strategic move by the WA Government to address the pressing need for long-term rental properties. By offering substantial incentives to property owners, the government aims to bring numerous vacant properties back into the rental market, providing much-needed housing for Western Australians and stabilizing the rental supply.
This initiative, alongside the extended STRA Incentive Scheme, reflects the government’s proactive approach to tackling housing challenges with innovative and effective solutions.