Government Must Stop Land Tax Grab

The Government has been warned against another land tax hike in the Property Council’s pre-budget submission.

Property Council WA Executive Director Joe Lenzo is calling on the Government to introduce a fairer and more efficient tax system in the next state budget, starting with a halt to property tax increases and abolishing land tax aggregation.

“After the 2016/17 budget period, the property industry will have been slugged with a 75% increase in land tax. This is compared to a 13% increase in total state taxation. It is clear as day that property is taking an unfair wack as this Government tries to right the ship.”

“The current land tax structure makes property a less attractive investment, passes higher costs onto tenants distorting housing affordability and reduces investor returns. The Government can give confidence back to the industry now by getting rid of land tax aggregation. This unfair practice can lead to property owners paying up to three times more land tax than a system that does not apply aggregation.”

“Ultimately we would like to see a move to a flatter tax structure which will provide a significant economic incentive for greater investment and more effective allocation of capital in the property sector.”

 A review of land tax aggregation, including a reduction in the tax thresholds and the introduction of a single flat land tax rate structure, is at the heart of the Property Council’s comprehensive to-do-list aimed at recalibrating the state economy.  Other reforms include:

  • Stamp duty reform for off-the-plan purchases and seniors looking to downsize
  • Align state infrastructure provisioning with strategic state planning in a single plan for infrastructure
  • Finalise the Perth public transport plan
  • Introduce more meaningful infrastructure reporting
  • Prioritise the funding of the State’s Economic and Employment Land Strategy
  • Speed up an earlier budget commitment to divest Government agency land and joint venture holdings
  • Utilise proceeds of a sale of the State’s electricity networks to fund major state infrastructure to support development

 

 

 “In a time where difficult decisions need to be made, these reforms provide a roadmap for Government to attract much needed property investment to the state, boosting our economy,”

“As we continue our transition from the mining boom, WA is more reliant than ever on a healthy a fully functioning property sector to drive the state’s economy.”

“The industry can reach its full potential and keep WA growing through reforms that improve efficiency, performance and ultimately the productivity of the property industry and the Western Australian economy more broadly.”

 

 

Media contact:  Joe Lenzo  |  M  0419 044 768  |   E  jlenzo@propertycouncil.com.au