Anger at Land Tax Increase Without Reform

There is growing anger and frustration in the WA property sector as land tax assessments are coming in with huge increases without any offsetting reforms like stamp duty reductions.

“Successive land tax increases have the potential to scare off much needed investment impacting not only the property sector but the state economy as a whole,” Property Council WA Executive Director Joe Lenzo said. 

“For the third year running we are being wacked by higher land tax increases with no plan to help the property sector grow through WA’s changing economic situation.”

The increase in this year’s land tax assessments follow a sharp increase in land tax rates in the State budget earlier this year, the third annual increase in WA land tax rates in succession. 

“The property sector understands WA’s difficult budget situation but without a reform plan the continual land tax increases are just a tax grab,” Lenzo said.

“Since 2013 WA’s land tax rates have risen by over 50% and for many individuals and businesses the actual land tax assessments have more than doubled because of the practice of aggregating properties into higher tax thresholds for assessment purposes.

“It’s just not good enough to slug the property sector to fix the State’s budget problems without giving the sector any hope that there is an economic reform plan to guide the sector’s and the state’s growth.

“The WA property sector is calling on the Barnett Government to immediately rule out any more land tax increases and engage with the industry on effective tax reform, including:

 

  • A plan to phase out stamp duty;
  • Strategic stamp duty reforms to support WA’s urban growth plans like removing the stamp duty impost for off-the plan purchases and helping seniors with their housing moves; and
  • Move to a single flat rate of land tax which removes the scourge of land tax aggregation.

 

“The property sector is ideally positioned to keep WA growing and tax reform is essential to maintain and attract new investment in the state.

“The State Government needs to come to the table and address the industry’s concerns or we risk losing out on lucrative investment opportunities,” Lenzo said.  

 

 

Media contact:  Joe Lenzo  |  M  0419 044 768  |   E  [email protected]