Property group welcomes WA land tax announcement

The Property Council of Australia (PCA) has welcomed an indication from the Western Australia government that it is considering addressing current land tax issues in the state.

Speaking at a business breakfast hosted by Business News last week, WA premier Colin Barnet said the 2016 budget would result in no tax increases for the state, an announcement that has been welcomed by the PCA.

In November 2015, the PCA claimed land tax rates in WA had increased by 50% since 2013 and accused the state government of a "tax grab."

Though they welcome the announcement that tax rates will not rise in the 2016/17 financial year, the PCA still believes there is a pressing need for the government to address the current land tax arrangements.

“It’s great that the WA Government has finally realised that unfair property taxes, like the distorted land tax system is hurting the wider economy,” PCA WA deputy executive director Lino Iacomella.

“After slugging the WA property sector with three successive annual land tax increases, reform of land tax in 2016 is a massive priority,” Iacomella said.

Iacomella said the PCA hopes to speak with the government in an attempt to find a solution, particularly around the practice of aggregating properties for tax purposes.

“Land tax aggregation is hugely unfair and discriminates against investors that own more than one property, often the effective land tax rate can double as the aggregated property holdings are taxed at higher rates.

“The solution is simple; each property should only be taxed individually and the number of higher thresholds should be reduced and ultimately a single rate of land tax should apply.

“This will attract more long-term productive investment in property which is particularly necessary to boost the economy and keep WA growing.”

Do you have more than $120k in your super fund? You could use your super to buy property - Find out how

Top Suburbs : geelong west , melton , alexandria , kariong , wiley park

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

Why does  Aussie need your personal information?    How does Aussie keep your information secure?
Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a partly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945.
© 2016 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here