WA tops nation for Land Tax and Council Rates increases

 

State and local property tax gauging has seen WA residents and businesses pay an additional $500 million in property taxes in 2015-16 according to the latest ABS survey on Australian taxation.

“It is alarming that property tax revenue in WA increased by 9.4 per cent in 2015-16 to a massive $5.4 billion at the same time as the local economy was struggling”, said Lino Iacomella, WA Executive Director for the Property Council of Australia.

WA recorded the largest increases in revenue from land tax and council rates in Australia, 27.5% and 7.4% respectively. 

“The ABS survey clearly shows the damage and how out of proportion the big increases in land tax were in recent years. 

 

 

WA 2015-16 ($ M)

Annual Growth

Australian Average

Total state and local property taxes

$5404

9.4%

9.6%

Land taxes

$941

27.5%

8.4%

Municipal rates

$2143

7.4%

5.5%

Stamp duties on conveyances

$1743

3.4%

11.9%

Other

$577

11.6%

19.3%

 

“West Australia also saw the largest increase in council rates in the country with a massive $2.1 billion paid to local councils in the 2015-16 financial year.

“The WA property sector and the wider economy cannot withstand further increases in property taxes.

“Thankfully the new state Government has promised not to increase state taxes, however it needs to go further and conduct a review of state taxes.

“A tax review is required to address the structural unfairness in the tax system, to ensure that WA can transition effectively to a broader based economy,” Mr Iacomella said.