Government Warned Against Tax Increases in WA BudgetThe Property Council of Australia has warned the WA Government against increases in property taxes to fix its Budget problems and instead, to implement a plan to encourage a new wave of investment-led growth while meeting unprecedented demand for public services and infrastructure.The Property Council’s key recommendations for the State Budget include:· Conducting an urgent review of the land tax system to distribute the tax burden more equitably.· Curbing the growth of public expenditure by increasing private sector service delivery.· Establishing an independent body to coordinate the delivery of state-wide infrastructure.· Recycling public assets to fund much needed infrastructure.”The Government’s own advisory body, the Economic Regulatory Authority, recently said the State’s land tax system is inefficient and has recommended that Treasury conducts a full scale review of all taxes, including land tax and stamp duty.”The Government also needs to think beyond tax increases to solve the mounting deficit. Innovative strategies are required that incorporate more private sector involvement in approvals processes, such as full private certification of building permit applications and the introduction of private certification of planning approvals.”In a constrained budget, the Government needs to get better ‘value for money’ for its infrastructure spending. The best way to do this is through an independent body that can advise, prioritise and deliver infrastructure, and that can be held accountable. “A significant portion of the State’s existing capital is tied up in under-utilised land and property. Asset sales, supported by bold, strategic asset investments, will drive economic and productivity growth”Short-term solutions to the State’s budget problems, like raising the rate of land tax, don’t work. We saw this last year when land tax was increased by 12.5% and the State’s Budget is still in trouble.”The Government needs to implement a plan that encourages growth in the broader economy, starting with the property sector”, said Mr Lenzo. Media contact: Joe Lenzo, Executive Director: Property Council, (08) 9426 1200 or 0419 044 768 Lino Iacomella, Dep. Executive Director: Property Council, (08) 9426 1200 or 0417 1 974
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