The WA Government has taken a small step in the right direction by introducing property tax relief in the 2004-05 State Budget.
The tax relief will include:
a 5% across the board cut in Stamp Duty worth $47.2 million;
an increase in Land Tax and Metropolitan Region Improvement Tax threshold levels worth $17 million; and
Stamp Duty concessions for first home buyers, worth $45.5 million.
The total tax relief will be $133 million for WA tax payers.
But the tax relief follows massive annual increases in property tax revenues alone of $501 million since 2000-01.
WA Property Council Executive Director, Mr Joe Lenzo, said that it was pleasing that the Government had prioritised property tax reforms.
“After a sustained campaign by the Property Council, the Government has acknowledged the need for immediate property tax relief in WA,” said Mr Lenzo.
“However, the WA Government has squandered an opportunity to use boom time stamp duty and GST revenues to create an environment where more capital is invested in WA.”
“Today’s tax cuts return only a small proportion of the huge GST and stamp duty revenues that have been pocketed by the WA Government.”
“On the expenditure side, we still see massive increases in Government spending on public service wages and health.”
“Instead of using the strong economic environment to establish an equitable tax structure to continue to attract business investment to WA, the Gallop Government has spent big on the public sector.”
“We will now be focusing our lobbying efforts on securing commitments to use GST revenues to deliver tax cuts following the next State election.”
For more information please contact:
Joe Lenzo, 0419 044