❓ Ms. Saffioti questions a 90% increase in land subdivision fees, citing concerns about housing affordability. The Minister defends the increase as necessary to cover service costs, arguing it won't significantly impact affordability and benefits those subdividing land.
AnsweredQoN 343Legislative Assembly
QuestionView source ↗
LAND SUBDIVISIONS —
FEES
343. Ms R. SAFFIOTI to the Minister for Planning:
I refer to the reported 90 per cent increase in subdivision
fees on 1 July this year.
(1) How does
the government justify a 90 per cent increase in these fees, given that housing
affordability and land availability continue to be a major problem facing
Western Australians?
(2) How much
extra revenue will be generated by this increase?
(3) Is this
additional revenue earmarked for additional staff to deal with planning
applications or will it flow directly to consolidated revenue?
FEES
343. Ms R. SAFFIOTI to the Minister for Planning:
I refer to the reported 90 per cent increase in subdivision
fees on 1 July this year.
(1) How does
the government justify a 90 per cent increase in these fees, given that housing
affordability and land availability continue to be a major problem facing
Western Australians?
(2) How much
extra revenue will be generated by this increase?
(3) Is this
additional revenue earmarked for additional staff to deal with planning
applications or will it flow directly to consolidated revenue?
AnswerView source ↗
(1)–(2)
It is the case that there will be an increase from 1 July in some of the fees
that are payable to the WA Planning Commission. They will increase to reflect
the costs of providing the service. An assessment was undertaken and, as a
result of that assessment, it was revealed that the charges previously in place
were not covering the costs of providing the service; therefore, a decision was
made to provide the increase, which, in proportionate terms, is quite
substantial. Nevertheless, I will give information about the quantum increase
in a moment. I do not expect they will have any significant impact on housing
affordability. For example, on the increase in the application fee in relation
to form 1A, which is for a subdivision, the current base fee is $1 533; the new
base fee will be $2 912. It is a substantial increase in proportionate terms.
That will apply to a two-lot subdivision. I do not have the figures for a
larger number of lots, but the proportionate increase is far lower when a
larger number of lots is involved. If somebody is subdividing a block of land
in two, they normally sell that for probably $250 000 at least. I do not think
the increase is anything like unaffordable and it is reasonable that the costs
that are being incurred by taxpayers are recovered from those who benefit from
the fact that they can subdivide their land. The funds will be collected by the
Department of Planning on behalf of the Planning Commission. Normally, those
funds are retained.
(3) As to the
precise budgetary decisions and how funds will be allocated in the budget, of
course that will be announced by the Treasurer in the budget.
It is the case that there will be an increase from 1 July in some of the fees
that are payable to the WA Planning Commission. They will increase to reflect
the costs of providing the service. An assessment was undertaken and, as a
result of that assessment, it was revealed that the charges previously in place
were not covering the costs of providing the service; therefore, a decision was
made to provide the increase, which, in proportionate terms, is quite
substantial. Nevertheless, I will give information about the quantum increase
in a moment. I do not expect they will have any significant impact on housing
affordability. For example, on the increase in the application fee in relation
to form 1A, which is for a subdivision, the current base fee is $1 533; the new
base fee will be $2 912. It is a substantial increase in proportionate terms.
That will apply to a two-lot subdivision. I do not have the figures for a
larger number of lots, but the proportionate increase is far lower when a
larger number of lots is involved. If somebody is subdividing a block of land
in two, they normally sell that for probably $250 000 at least. I do not think
the increase is anything like unaffordable and it is reasonable that the costs
that are being incurred by taxpayers are recovered from those who benefit from
the fact that they can subdivide their land. The funds will be collected by the
Department of Planning on behalf of the Planning Commission. Normally, those
funds are retained.
(3) As to the
precise budgetary decisions and how funds will be allocated in the budget, of
course that will be announced by the Treasurer in the budget.
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