The Property Council of Australia has called on the State Government to fast-track the re-introduction of the developer land tax concession, in order to boost supplies of land for new housing in Western Australia.
The plea was a key outcome of the Property Council's residential development committee, which met on 25 July.
Joe Lenzo, Executive Director of the Property Council's WA Division said the land tax concession was a small price (for the Government) to pay to help solve the land supply crisis in WA.
There were also the economics gains to be made for the Government that had been over-looked in the past, according to Mr Lenzo.
"The developer land tax concession was abolished by the Business Tax Review in 2003 despite the review finding that the measure would result in a revenue saving to the State Government of only $4.5 million, by 2005-06.
"Between 1996 and 2003 land developers who held stocks of subdivided lots incurred a concessional rate of land tax. The main objective of the land tax concession was to increase the buffer stocks of available land and encourage larger releases of sub-divisional land. This is particularly relevant in the marketplace today, which is characterized by low stocks of available residential land.
"The land tax concession for developers would encourage releases of larger parcels of newly sub-divided land. The land tax concession would encourage developers to hold larger stocks of sub-divided land throughout the year, which also assists in keeping land prices affordable.
"The urgency of the land supply crisis is too important for the land tax concession to be considered by the on-going State Tax Review. The tax concession should be introduced immediately," said Mr. Lenzo.
The Property Council of Australia (WA) residential development committee represents the State's major land developers and allied businesses. (See below details of committee members).
For further information please contact:
Joe Lenzo, Executive Director, Property Council (WA), (08) 9426 1200 or 0419 044 768.
Lino Iacomella, Senior Policy Advisor, Property Council (WA), (08) 9426 1204 or 0417 501 974
The Property Council of Australia (WA) residential development committee, comprises the following businesses: Hawaiian, Pindan, MLG Property Group, Dibstone Group, Investa Property Group, Hegney Property Group, Hassell, Peet, Mirvac Fini, Stockland, Australand, Cape Bouvard, Freehills, LandCorp, Multiplex, Coldwell Banker Pro-Property.