Home Property Australia What s missing from the State Budget

What s missing from the State Budget

  • September 21, 2017

State Budget initiatives needed to support growth 

The Property Council is pleased to see the property industry is recognised as a key economic driver for WA in the state budget. This evident in the decision not to increase land tax and stamp duty after big rises in previous budgets.

However, questions remain around the implementation of a foreign investor stamp duty surcharge, the application of value capture to fund METRONET, as well as the absence of additional growth initiatives that were put forward to the Treasurer in the Property Council’s Pre-Budget submission.

It is concerning that a foreign investor stamp duty surcharge will be introduced at a time when we should be encouraging foreign investment. We are pleased that the Government looks set to avoid the mistake of some eastern states that taxed developers wanting to deliver new supply.

A foreign investor surcharge should be backed by well-designed legislation.  It’s encouraging to see that Government is looking to include the exemption of residential developments of 10 or more properties which means companies wanting to create new projects and get on with the task of adding supply and generating jobs can continue to do so.

The $1.3 Billion funding commitment for stage 1 of METRONET sends a positive message to industry, as development and construction companies are gearing up to respond to help deliver the largest urban renewable project Perth has seen.

Despite this commitment from the Government to the project, Property Council seeks more information and industry consultation about how the Government plans to apply a value capture mechanism to help fund METRONET.

The Property Council put forward to the Treasurer prior to the release of the Budget, several growth initiatives which were absent from the Budget. These included:

  • Making more use of the State’s asset recycling program to fund infrastructure investments;
  • More public private participation in major infrastructure projects; and
  • Using strategic stamp duty incentives for seniors downsizing and purchasing off-the-plan dwelling in infill locations.

The Property Council looks to further engage with the Treasurer about these outlined growth initiatives, the design of a foreign investor stamp duty surcharge and the application of value capture to fund METRONET.