As West Australians head to the polls on 13 March, the Property Council is championing policies that will stimulate the local property industry, accelerate investment and create jobs, says executive director Sandra Brewer.
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Three key takeaways
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Big projects are reshaping Perth’s skyline, significant planning reforms are underway, and residential incentives and stamp duty relief have maintained WA’s construction pipeline during a period of unprecedented uncertainty.
But the state’s economic success requires a long-term focus on the right policy settings to enhance business and consumer confidence, support sustainable growth and set the state on a permanent high-productivity trajectory, says Brewer.
“The WA economy has always ebbed and flowed. Investing in the right policies to secure a stable and sustainable property industry can help us move beyond the boom-and-bust cycles we have experienced in the past.”
The Property Council of Australia’s election platform, Recovery and Growth: Powered by Property, outlines five key areas for policy reform.
1. Promote population growth to drive economic activity
Brewer says the West Coast is reporting skills shortages which could hold back commercial and economic activity. She points to Australian Bureau of Statistics data which records 37,400 job vacancies in WA in November alone. “The property industry competes for labour with the mining and infrastructure sectors, which impacts overall project costs and affordability,” Brewer explains. The Property Council’s recommendations include a payroll tax rebate for relocating workers and a plan to welcome back international students.
2. Streamline planning processes to drive growth
“Local government planning processes and state agency referral times lack certainty and transparency – and this has a significant impact on the cost of development,” Brewer says. Planning reforms, greater commitment to efficiency and a permanent State Development Assessment Unit are on the Property Council’s wish list.
3. Eliminate disproportionate property taxation
WA’s property industry contributed 33.5 per cent of total state taxes and local government rates, fees and charges in 2018-19 – a massive $6.3 billion. Brewer wants to see an annual council rates cap, a comprehensive state review and “genuine” tax reform by 2025. “The cost of doing business has a crucial role to play when investors are choosing where to place capital,” she says.
4. Revitalise the CBD and secure the success of the Perth City Deal
Perth CBD’s was facing strong headwinds long before coronavirus crashed on our shores. But Brewer is optimistic that a “revitalised and re-energised City of Perth Council”, led by new Lord Mayor Basil Zempilas, can be the catalyst for a new “shared vision”. She points to the council’s recent work to roll out free parking on weekends, a dynamic calendar of events and grants for small businesses. “The $1.5 billion Perth City Deal could be a gamechanger for WA. But its success is dependent on strategies that revitalise our CBD,” Brewer adds.
5. Support the delivery of diverse housing stock to keep WA growing.
The state government’s housing strategy, launched in October 2020, sets a target of 130,000 new private sector rental dwellings. Meeting this “highly-ambitious” target will require a range of strategies, Brewer says. The Property Council proposes permanent stamp duty concessions on apartment development, favourable tax settings for build-to-rent, abolition of surcharges on foreign ownership of property and a “last homeowners’ grant” to encourage rightsizing.
“Our plan is a strong economic platform for Western Australia and will secure the future of our property industry over the long term. We will continue to champion our industry in the lead up to the state election. We stand ready to work with the next WA Government to support our state’s recovery and growth, powered by property,” Brewer concludes.