Land Tax Anger

The Property Council is receiving a growing number of complaints about excessive increases in land tax assessments in WA following the rise in the land tax rates in the state budget this year.  The industry anger and frustration is focused on the big tax increases in a period when property values are softening and the lack of any offsetting tax reforms at the state level. This includes a plan to phase out stamp duty to free up economic activity and align with other state policies like infill housing development.

The Property Council is addressing these issues by calling on the Government to favourably consider appeals to current year land valuations in light of the softening property market in WA and implement priority land tax reforms for the year ahead, including:

• Capping annual increases in land tax assessments; and
• Reducing the top two marginal land tax rates (2.67% to 2.5%; & 2.00% to 1.80%), which is more in line with tax scales interstate. 

 Over the longer term, the Property Council is calling on the state Government to review the land tax system and move to a single rate of land tax to eliminate the problem of land tax aggregation. Other strategic reforms include limiting stamp duty for off-the-plan purchases and providing seniors with stamp duty relief.

For more information about the Property Council’s  tax advocacy, please call Lino Iacomella on  9426 1200.