Extra tax on foreign investment will cost WA jobs



WA Labor’s plan to put an extra tax on foreigners buying property will not work in WA and it will risk stalling development and job creation in Perth’s emerging metropolitan hubs.

“Labor’s plan to put an extra 4% tax on foreign buyers of residential property in WA is a big shock to the industry and is strongly opposed by the Property Council”, said Property Council WA Executive Director, Lino Iacomella.  

“The decision shows a lack of understanding of the WA property market and it will back-fire badly.

“WA is different to other states with this tax.  We have the lowest level of foreign investment in property in Australia and putting an extra tax on foreign buyers will make it much harder to get the investment we need to grow the state.

“Foreign buyers already pay the same stamp duty and land tax as other buyers and they are very restricted in what they can buy, mainly limited numbers of new multi-units and apartments off-the-plan.  

“These are exactly the sorts of projects Perth needs more of to make our housing stock more diverse, particularly for single people and seniors’ households.

“In Perth, pre-sales to foreigners is essential to underwrite new multi-unit projects that are starting to emerge around retail centres and train stations.

“We are calling on WA Labor to withdraw the plan to put an extra tax on foreign buyers of residential property and speak to the industry about growing WA by attracting more investment into property’, said Mr Iacomella.  
 
Media contact:  Lino Iacomella  |  M  0417 501 974   |   E  liacomella@propertycouncil.com.au