Property buyers and investors have lost patience with the tax reform process in Western Australia and the Property Council of Australia is demanding a major tax reduction strategy at the May State Budget.
“The latest report on the State’s finances continues to reveal booming State Government revenue primarily from the property sector, however the Budget surplus is at risk of being eaten up by excessive rises in government expenditures”, said The Executive Director of the Property Council of Australia (WA), Joe Lenzo.
“At the May Budget the community is expecting a direct dividend from the State’s economic expansion, in the form of major cuts to property taxes.
“The December quarter 2005 report into the State’s finances reveals that the property sector contributed 53% of the State’s taxation revenue in the first six months of 2005-06. Twelve months ago the property sector’s share of State taxes was 43%.
“The blow-out in property taxes is outrageous and unsustainable.
“The Property Council is calling for a property tax reduction package of $500 million to be announced at the May Budget. This is a realistic objective and it will bring the property sector’s share of State taxes to around 40%, which is still an historically high result.
“Western Australia is in the middle of a major economic expansion and the Government has to realize that its property taxes like stamp duty rates, are far too high and out of kilter with our economic settings”, said Mr Lenzo.
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