Tax Reform And Asset Sales Priorities After The Budget
Following the recent State Budget, the Property Council is calling on State Government to fully engage in tax reform and move quickly on identifying the new round of government land and property assets they intend to sell.
More Tax Reform Needed
“There is mounting concern in the industry that the broadening of the land tax base in the State Budget was not matched with offsetting measures”, said Joe Lenzo, WA Executive Director Property Council of Australia.
“This is the third consecutive increase in land tax rates in WA without any relief from other harsh measures, like the practice of aggregating land holdings into higher land tax thresholds for assessment purposes.
“The effective way to address the aggregation problem is to reduce the number of tax thresholds and lower the top marginal rate of land tax.
“The Government’s decision not to increase WA’s top-marginal land tax rate is recognised but the existing rate is still too high in comparison to other states.
“Another urgent measure to offset the broadening of land taxes is the abolition of stamp duty on real estate purchases. Stamp duty is universally recognised as the most harmful tax because it makes property buying less affordable and it limits households moving into housing they need. Stamp duty on real estate purchases also limits infill development in Perth, which is part of the State’s key planning priorities.
“Simply ramping up land tax revenues without offsetting tax measures will make WA a less attractive place to invest in property and infrastructure at a crucial time in the State’s economy.
“We are calling on the Government to immediately rule out further land tax increases and engage with the property sector about genuine tax reform.”
Asset Sales Welcomed
“The Property Council welcomes the Government’s Budget commitment to open up more private sector investment in government land and property assets.
“We urge the Government to quickly identify and progress the government land and property assets intended for sale and long-term leaseback.
“There is a strong appetite for private sector investment in land and property assets in WA and the Government should not miss this opportunity,” said Mr Lenzo.
For further stories from the Property Council on the State Budget, see below.
Land Tax Hike Overshadows Growth Initiatives In The WA Budget.