PROPERTY TO LEAD THE RECOVERY IN THE WA STATE BUDGET
In its 2018-19 pre-budget submission, the Property Council has called on the State Government to let the property industry grow WA with nine key initiatives to create jobs and build strong communities.
“The property industry has a significant role to play in leading the State to economic recovery, including driving job creation, attracting investment and harnessing the private sector to deliver key outcomes for WA” said Lino Iacomella, Executive Director of the Property Council WA.
“This is why we put forward nine key initiatives for the 2018-19 State Budget to encourage the emerging recovery in the property and construction sectors, create more jobs and attract higher population growth rates.”
“One of the key initiatives was to rule out any further increases to state property taxes or introduce new taxes.
“At a time when the State is beginning to show all the positive signs of recovery, it is critical that no further tax increases are implemented. In fact, the WA property sector desperately needs taxation relief to assist with market recovery.” Mr Iacomella said.
We have identified nine strategic initiatives we for the 2018-19 State Budget, including:
1. Encourage the recovery in WA property and construction sectors and job creation, by ruling out increases to state property taxes or introducing new taxes.
2. Not to raise the Perth Parking Levy as it is a highly inequitable tax that negatively impacts businesses in the CBD that are struggling with high office vacancies and low retail trade.
3. Incentivise more infill housing in major urban areas and around key urban projects like METRONET, by providing a stamp duty exemption relating to the land component in off-the-plan residential dwelling purchases prior to construction completion.
4. Introduce a stamp duty concession for eligible seniors that are downsizing their housing needs to a newly built residence under $550,000.
5. Apply a suite of land tax reforms, including;
Reduce the top marginal rate of land tax to be more competitive with other states and phase out aggregation by moving to a flatter land tax structure with fewer tax thresholds;
Capping annual increases in land tax assessments;
Broaden the land tax base through a reassessment of minimum tax thresholds and a review of entities (excluding owner occupier housing) that escape the land tax net; and
Extend the land tax exemption for retirement villages to include land on which a village is being constructed.
6. Step up the state asset recycling program, including the sale of WA’s land titles registry to reduce state debt and to fund state infrastructure projects.
7. Encourage more public-private partnerships for infrastructure delivery.
8. Commit to the establishment of a City Deal partnership in WA to fund infrastructure; and
9. Defer the introduction of the foreign owner stamp duty surcharge and exclude from the surcharge investment in housing developments of 10 or more properties.
“These initiatives will help deliver a robust economic strategy through the State Budget which will ensure we consistently improve WA’s liveability, prosperity, and affordability.” said Mr Iacomella.
To view Property Council's submission please click here