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WA Gov't calls for stamp duty relief THE Real Estate Institute of Western Australia (REIWA) has renewed its call for stamp duty relief in the wake of the latest interest rate hike.REIWA President Rob Druitt said the rate rise would put added financial pressure on investors, first home buyers and people looking to upgrade their home. "While state and federal governments cannot do anything about Reserve Bank rate rises they can take steps to modify their own taxes and charges to bring down the cost of housing and to help ease the rental market," Mr Druitt said. The mid-year budget review showed that the Western Australian Government is in a position to ease the burden of property taxes without impacting its ability to deliver on its major infrastructure programme. "The added burden of excessive stamp duty costs is impacting right across the housing system and contributing to the rental crisis and to overall affordability. "The federal government has recognised the need to encourage investors with tax incentives as a way to replenish housing stock in the rental market, but in Western Australia, state government has not made this important connection," Mr Druitt said. Mr Druitt said 80 per cent of rental homes were provided by private investors and without this support the system would collapse. "The state government does not have the inclination or the funds to provide adequate public housing and it's left to private investors to provide much needed homes. "However, the prohibitive stamp duty costs associated with purchasing property is seeing fewer investors putting their money into the Western Australia housing system," Mr Druitt said. Mr Druitt said stamp duty thresholds in Western Australia have not changed for 25 years and are hopelessly out of kilter with the big shift in house prices in recent years. Consequently ninety percent of buyers are in the top two tax brackets. "If the state government is serious about housing affordability, it needs to recognise that it must rein in stamp duty rates to a more reasonable level. "Deterring investors from buying a rental property means that housing stock in the rental market cannot keep up with demand and in turn contributes to rent increases," Mr Druitt said. |
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