No Tax Increase Promise Welcomed
The Property Council welcomes the WA Liberal’s announcement not to raise taxes or bring in new ones if re-elected and is calling on all other parties contesting the WA election to match this commitment.
“WA investors and businesses are ‘taxed-out’ after three big land tax increases and further increases or the suggestion of tax increases will stall the expected recovery in real estate markets in 2017 and will not be tolerated”, said Lino Iacomella, Property Council WA Executive Director.
“The land tax relief also announced today by the WA Liberals by raising the minimum land tax threshold to $360,000 will help many owners of single investment properties.
“However this land tax relief does not deal with the major structural problem in the land tax system of aggregation, which leads to more than 80% of land tax being paid by less than 10% of tax payers. Land tax aggregation hurts businesses and large-scale investors in job generating projects.
“The land tax system needs urgent reform, including a move to a flatter tax structure and the phasing out of land tax aggregation.
“Ruling out tax increases and new taxes is an important start and it will give the industry confidence to grow. It is crucial that all the parties in the state election match this and also agree to urgent tax reform, including eliminating land tax aggregation” Mr Iacomella said.