Reform Property Taxes to Keep WA Growing: Election
The property industry is calling on all major parties contesting the WA State election to commit to no further increases in property taxes, reforms to stamp duty and land tax systems and a broader state tax review.
“The WA economy cannot withstand any further increases in property taxes which negatively impact investment and stifle growth,” Property Council WA Executive Director Lino Iacomella said.
“In the last four years, land tax rates have risen by 50% and final land tax assessments have escalated by over 100% because of aggregated land valuations. Stamp duty has risen to represent around four percent of the purchase prices of a home in WA, which is more than the deposit for most home-buyers.
“Significant tax increases have left the property industry carrying a disproportionate load of the State’s budget repair process. State land tax revenue for example, has risen by 75% since the 2012/13 budget. This is compared to an increase of just 13.6% of total state taxation revenue in that same time.
“The sector is now contributing more than $9 billion in State and local property taxes, which represents 33 per cent of every dollar of State and local tax revenue raised. This heavy tax burden, and the absence of meaningful reforms, has eroded the industry’s productivity and efficiency and will lead to declining real estate activity and less property investment.”
“Ahead of next year’s election, all major parties have an opportunity to embrace an agenda of tax reform which would include:
no increases in property taxes
phasing out land tax aggregation
stamp duty equity for off-the-plan purchasers
and a stamp duty concession for seniors downsizing.
A broader state tax review.”
“This would address the structural unfairness in the tax system and aim to make taxes simpler to promote housing affordability, investment and growth,” Mr Iacomella said.
Media contact: Lino Iacomella | M 0417 501 974 | E [email protected]