WA Government must stop land tax grab

Land tax grab in WA must stopA review of land tax aggregation is at the heart of the Property Council of Australia’s comprehensive to-do-list aimed at recalibrating West Australia’s flagging economy.The Property Council is calling on the government to introduce a fairer and more efficient tax system in the next state budget.In its pre-budget submission, the Property Council has warned the Barnett Government that another land tax hike poses serious risks to the West Australian economy.After three successive land hikes, property owners have been slugged with a 75 per cent rise. In comparison, total state taxation has risen by 13 per cent over the same period.”The current land tax structure makes property a less attractive investment,” says the Property Council’s WA executive director Joe Lenzo. Higher costs are passed onto tenants, which in turn distorts housing affordability and reduces investor returns, Lenzo explains.”Ultimately we would like to see a move to a flatter tax structure that will provide a significant economic incentive for greater investment and more effective allocation of capital in the property sector.”While a review of land tax aggregation, including a reduction in the tax thresholds and the introduction of a single flat land tax rate structure, is top of the Property Council’s priorities, other reforms include stamp duty concessions for off-the-plan purchases and for seniors looking to downsize. The Property Council also wants to see a single plan for infrastructure, more meaningful reporting on infrastructure and funding prioritised for the state’s economic and employment land strategy. It also wants to see proceeds from the sale of the state’s electricity networks funneled into major infrastructure projects.Lenzo says the proposed reforms provide a “roadmap” for the WA Government to attract much-needed property investment into the state.”As we continue our transition from the mining boom, WA is more reliant than ever on a healthy a fully functioning property sector to drive the state’s economy,” Lenzo concludes.