The Property Council of Australia WA has renewed its call for a reduction of stamp duty, capping land tax assessments and a lifting of the first home buyer duty threshold in May's 2007 state budget.
The Property Council of Australia WA has renewed its call for a reduction of stamp duty, capping land tax assessments and a lifting of the first home buyer duty threshold in May's 2007 state budget.
Reminding the market of its earlier submission to the state's tax review, Property Council WA executive director Joe Lenzo said the council wants a 15 per cent reduction in stamp duty on all property purchases, and the threshold set at $400,000.
"The recommendations are affordable and within the scope of the State Tax Review. The Government should also be held more accountable for its public sector expenditure targets," he said.
"From a property sector perspective the State Government must deliver significant tax cuts to avert a market reaction and a community revolt."
The full text of a Council announcement is pasted below
The Property Council of Australia (WA Division) has released details of its 2007 State Budget submission. The Property Council is recommending a suite of tax cuts and reforms to the State's tax system following consultation in the property sector.
Executive Director of the Property Council of Australia WA Division, Mr Joe Lenzo said this will be the most important State Budget for the property sector since the Labor Government took office in 2001.
"The Government has the financial capacity to cut taxes, it has consistently signaled tax cuts at the next Budget, and the community expectation for tax cuts has never been higher. From a property sector perspective the State Government must deliver significant tax cuts to avert a market reaction and a community revolt.
"Our key recommendations include an immediate 15% reduction in stamp duty on all property purchases, lifting the first home buyer stamp duty threshold to $400,000 and capping annual land tax assessments.
"The recommendations are affordable and within the scope of the State Tax Review. The Government should also be held more accountable for its public sector expenditure targets.
"The following are the main recommendations in the Property Council's Budget submission.
- Lift the First Home Buyer stamp duty exemption to $400,000.
- Immediately cut the amount of stamp duty payable on all property purchases by 15%.
- Place a cap on annual land tax assessments to individuals.
- Remove bracket-creep from the land tax scale.
- Abolish aggregation of properties for individual land tax assessment.
- Introduce a land tax concession for residential land developers.
- Abolish the Perth parking levy payable by property owners and business tenants in the city, and replace it with a more equitable funding measure for public transport.
- Cut the payroll tax rate by 0.5% (to 5.0%).
- Calculate property insurance premiums on a GST exclusive basis.
- The Government should recommit to its own public sector expenditure constraint targets and be held accountable.