WA election countdown
As West Australians head to the polls on 11 March, there’s a fork in the road as both major parties offer clear alternatives for the property industry.
As the Barnett Government seeks a third term in office, signs of economic slowdown are evident. House prices are falling, unemployment is at its highest levels since 2002, and personal insolvency rates are on the rise. The office vacancy rate in Perth stands at 22 per cent – the highest in the country.
“It’s time to get back to basics,” says the Property Council’s executive director Lino Iacomella. And that starts with a plan for growth.
The state currently has no public plan for infrastructure investment, which Iacomella says makes long-term planning for property development a challenge.
“We have a very good strategy which maps out the long-term growth pathways – but it’s not matched with any plan for essential infrastructure to enable this growth to happen,” Iacomella explains.
“What we need is a plan for infrastructure investment that industry and the community can get behind and an independent agency to steer the plan.”
Current taxation policy is also putting a handbrake on growth, Iacomella adds.
“We urgently need a review of tax system to make taxes fairer. Our land tax system is broken. It’s too complicated, there are too many thresholds and it is a real killer in terms of attracting investment and confidence in the industry.”
Planning reform is on the Property Council’s radar on several fronts, and Iacomella says more consistent local planning laws and modern strata laws will boost confidence and building activity.
“The biggest impediment to development in Perth is the large number of inconsistent local planning laws.”
Equally, reforms to stamp duty must remain on the table.
“One of the best ways to stimulate growth in the housing market is to reduce the stamp duty costs for off-the-plan purchases. This is working well in other states, and is supporting infill development and greater diversity in housing choice.”
Iacomella welcomes the Liberal’s election commitment to introduce stamp duty concessions of up to $15,000 for seniors downsizing into a property valued up to $7,000. A $10,000 concession will also apply to vacant blocks valued up to $400,000.
“These initiatives would help thousands of seniors in WA move into more suitable housing and free up larger homes for younger families,” he says.
Iacomella says the Opposition’s plan to tax foreign investors risks stalling development and job creation.
“WA already has the lowest level of foreign investment in the country and an extra tax will act as a disincentive to development.
“There are already restrictions in place on what foreign buyers can purchase – primarily new multi-units and off-the-plan apartments.
“Pre-sales to foreign investors is essential to underwrite new multi-unit projects emerging around retail centres and train stations – and these are exactly the sorts of projects Perth needs to increase housing diversity and choice.”
Iacomella says the end of the state’s mining boom brings with it new opportunities, and that the property industry can be a critical driver of growth and prosperity.
“But we need plans and policies that give our industry certainty. Then we can get on with building our state with confidence,” Iacomella concludes.
Industry has its say on foreign investor tax: survey results
Download the Property Council’s WA State Election Agenda.