For the second year running Western Australia has been the nation's highest taxing state, data released today by the Australian Bureau of Statistics (ABS) has shown.
For the second year running Western Australia has been the nation's highest taxing state, data released today by the Australian Bureau of Statistics (ABS) has shown.
The ABS data shows a steady rise in Western Australia's taxation collections to $3,229 per person, well above the average for all states of $2,792 per person.
The data also showed that WA tax collections are up significantly from 2001-02 figures which placed Western Australia well behind New South Wales and Victoria.
In response to the ABS survey of state taxes, the Property Council of Australia (WA) has called for the state government to cut property taxes at the May Budget.
The state government has claimed that using a per capital measure of tax collections is misleading, preferring instead to measure tax competitiveness relative to gross state product.
This measure places the state below the weighted average of other states.
The Property Council statement is pasted below:
The Bureau of Statistics finding, released today, that Western Australia is Australia's highest taxing state has increased the pressure on the WA Government to cut taxes at the May Budget.
"The Government should be embarrassed that WA is the highest taxing state despite all the rhetoric of tax reform over the term of the Government," said Joe Lenzo, Executive Director of the Property Council of Australia (WA).
"In 2006-07 Western Australians paid an average of $3229 in state and local government taxes, which is 16 pert cent more than the Australian average. It is particularly disturbing that the average state tax bill paid by Western Australians is rising at twice the national average.
"Property is the most over-taxed sector in WA, accounting 56 per cent of total state taxes.
Mr Lenzo said the property tax 'rip-off' in WA is the state's soft underbelly, and it is harming the state's ability to attract skilled workers and retain migrants to sustain the state's strong economic performance.
In it's submission to the State Budget process the Property Council has called on the State Government to cut conveyance stamp duty rates by 10 per cent across the board and abolish the aggregation of property holdings for purposes of land tax assessments.
"These recommendations are aimed specifically at making property more affordable for owner occupiers and boost the supply of much needed rental properties", said Mr Lenzo.
