WESTERN Australia’s property industry needs tax relief not increased taxes, according to the Property Council of Australia WA.
After reports the McGowan Government is considering introducing stamp duty surcharges on foreign investors and in the lead-up to the Treasurer Ben Wyatt’s first Budget next month the property council is calling on the McGowan Government to commit to no further property tax increases.
Property Council of Australia WA executive director Lino Iacomella said despite the deflated state of the WA economy, WA has been continually hit with some of the highest rates of property tax increases in recent years.
Mr Iacomella said there was no capacity for further tax increases for the property industry and in fact the sector needed tax relief to drive the property market during the economic downturn.
“In 2015-16 land tax revenue rose by 27.5 per cent in WA compared to an 8.4 per cent increase for all of Australia,’’ he said.
“Revenue from municipal rates in WA rose by 7.4 per cent in 2015-16 compared with the Australian average of 5.5 per cent.
“Land tax rates have also risen by 50 per cent in the past four years.
“We are also in a position where stamp duty equates to around 4 per cent of a purchase price, more than some deposits.
“The property sector has seen more than its fair share of taxes.
“Any more will stifle the market, costing WA millions in potential revenue.
“The government must shift focus from raising revenue to job creation that will fuel the growth of the state.
“Investment in major infrastructure projects such as Metronet will spur investment and keep WA growing.’’