The State Governments inability to contain its spending has coincided with record high levels of property taxes in Western Australia.
According to the Government's latest financial statement, the property tax share of total State taxes in WA reached 50.5% in the nine months to March 2006. Five years ago the property tax share of total State taxes was only 31%.
Joe Lenzo, Executive Director of the Property Council of Australia (WA Division) said the Government was recklessly riding the property boom. Mr Lenzo attributed the rise to an increase in stamp duty fees.
"The increase in stamp duty revenue is almost twice the increase in property values.
"In the nine months to 31 March 2006, stamp duty revenue from property purchases in WA was up by 53% on the same period in the preceding year. Over the same period, the Australian Bureau of Statistics' Perth house price index rose by 28.8%.
"Government expenditure in the nine months to 31 March 2006 is significantly over-budget and 7.5% higher than the same period the previous year.
"All of us have reason to be fearful of continuing high State taxes because the Government is unable to rein in its spending and it is wasting the proceeds of the boom," he said.
Mr Lenzo was adamant the big concern in the property sector was that the State Government would not be able to afford the much anticipated tax cuts at the conclusion of the long-running State Tax review.
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