The Property Council of Australia has hit back at yesterday's statement by WA Treasurer Eric Ripper that cutting stamp duty on property purchases will make housing less affordable.
The Property Council of Australia has hit back at yesterday's statement by WA Treasurer Eric Ripper that cutting stamp duty on property purchases will make housing less affordable.
Property Council WA executive director Joe Lenzo accused Mr Ripper of using excuses to not cut taxes while pocketing significant tax revenue.
"The Treasurer's latest excuses for not cutting taxes are illogical and they mis-represent the stresses occurring as a result of spiraling property values and government inaction," he said.
He quoted findings from the Reserve Bank and the Productivity Commission in support of his statements.
"First home buyers and other people wanting to re-enter the market need urgent assistance to bridge the 'deposit-gap'. The best way the government can help is to cut stamp duty on home purchases," Mr Lenzo said
The full text of the Property Council's announcement is pasted below
The property sector in Western Australia strongly disputes claims by the State Treasurer that cutting stamp duty on property purchases will worsen home buying affordability.
"The community is fed-up with excuses from the Treasurer for not cutting property taxes while the Government is pocketing massive wind-fall tax revenue from the property boom.
"The Treasurer's latest excuses for not cutting taxes are illogical and they mis-represent the stresses occurring as a result of spiraling property values and government inaction", said Mr. Joe Lenzo, Executive Director of the Property Council's WA Division.
"The Treasurer has selectively quoted submissions made to the 2003 Productivity Commission Inquiry on first home ownership, however he omitted to say that the Reserve Bank of Australia submission to the inquiry included the following.
"In our view, however, stamp duty has not pushed up house prices, for reasons elaborated in the body of the submission. There can be little doubt, on the other hand, that when stamp duty is applied to first-home buyers, it increases the 'deposit gap' they face, and thus makes home purchase more difficult". (Reserve Bank of Australia 2003).
The Treasurer also omitted to mention the following key finding of the Productivity Commission report into first home ownership.
"Reducing reliance on stamp duty would help first home buyers and improve the efficiency of housing markets over time". (Productivity Commission 2004).
"The Treasurer's excuses for not cutting stamp duty and helping home buyers are not valid and the community should be very concerned with a government that is not looking after the interests of West Australian households.
"The work of the State's recently appointed land supply coordinator will eventually bring more land onto the market, however urgent tax reforms are required today help solve the home buying affordability crisis today.
"First home buyers and other people wanting to re-enter the market need urgent assistance to bridge the 'deposit-gap'. The best way the government can help is to cut stamp duty on home purchases", said Mr Lenzo.
