17/04/2018 - 10:47

Property Council calls for tax relief

17/04/2018 - 10:47

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The Property Council of Australia has called on the state government to rule out increasing property taxes in the 2018-19 budget, as the local housing market continues to shows signs of recovery.

Property Council calls for tax relief
Perth house prices rose 0.3 per cent in March. Photo: Attila Csaszar

The Property Council of Australia has called on the state government to rule out increasing property taxes in the 2018-19 budget, as the local housing market continues to shows signs of recovery.

As part of its pre-budget submission, the Property Council has outlined nine initiatives to help foster growth in the Western Australian property sector.

The first initiative asks the government to rule out increases to state property taxes or introducing new taxes.

The Property Council is also requesting the Perth Parking Levy not be raised and for the government to incentivise more infill housing in major urban areas by providing a stamp duty exemption.

The latest data from CoreLogic, released earlier this month, revealed a 0.3 per cent rise in Perth house prices in March with Perth recording an increase in four of the past six months.

However, house prices in Perth are still down 2.4 per cent annually.

“The property industry has a significant role to play in leading the state to economic recovery, including driving job creation, attracting investment and harnessing the private sector to deliver key outcomes for WA,” Property Council WA executive director Lino Iacomella said.

“This is why we put forward nine key initiatives for the 2018-19 state budget to encourage the emerging recovery in the property and construction sectors, create more jobs and attract higher population growth rates.

“At a time when the state is beginning to show all the positive signs of recovery, it is critical that no further tax increases are implemented.

“In fact, the WA property sector desperately needs taxation relief to assist with market recovery.”

The group has also flagged a suite of land tax reforms, including a reduction in the top marginal rate of land, capping annual increases in land tax assessments, broadening the land tax base and extending the land tax exemption for retirement villages.

Also among the initiatives are calls for a step-up in the state asset recycling program and for more encouragement for public-private partnerships in the infrastructure sector.

Mr Iacomella said the initiatives would help deliver economic growth for the state.

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