❓ Mr. Wyatt questions the Premier about a significant land tax increase for constituents, and the Premier acknowledges the increase, attributing it to GST revenue issues and declining resource prices, while defending WA's overall lower land tax rates compared to other states.
AnsweredQoN 942Legislative Assembly
QuestionView source ↗
LOCAL
GOVERNMENT RATES — LAND TAX
942. Mr B.S. WYATT to the
Premier:
I have a supplementary question. I ask the Premier again: is
it reasonable for Mr and Mrs Henry of Erskine, in the electorate of the Deputy Premier,
who sits next to him, with a 4.8 per cent increase in the valuation of their
land to cop a 97 per cent increase in the land tax assessment? Is that an
excessive increase?
GOVERNMENT RATES — LAND TAX
942. Mr B.S. WYATT to the
Premier:
I have a supplementary question. I ask the Premier again: is
it reasonable for Mr and Mrs Henry of Erskine, in the electorate of the Deputy Premier,
who sits next to him, with a 4.8 per cent increase in the valuation of their
land to cop a 97 per cent increase in the land tax assessment? Is that an
excessive increase?
AnswerView source ↗
Finally, the member has articulated a question. I am happy to
answer it. The land tax increase on many property owners is high. We
acknowledge that.
Mr P. Papalia :
Ninety-seven per cent.
Mr C.J. BARNETT :
Yes, Wonder Boy! I will answer the question.
Mr D.A. Templeman interjected.
The SPEAKER :
Member for Mandurah, I call you to order for the first time.
Mr C.J. BARNETT :
So, with getting 30c in the dollar out of GST effectively —
Mr B.S. Wyatt : You've
always known that.
Mr C.J. BARNETT :
No—effectively, there is a unique system in the Australian —
Several members interjected.
Mr
C.J. BARNETT : Mr Speaker, I am attempting to answer the question. There is
a unique situation in the Australian Federation, whereby today we have the
commonwealth government basically taxing Western Australia to fund other
states. That is what is happening. That is a major impact of $3.7 billion a
year on state finances. Additionally, we have had a very large fall
particularly in iron ore prices and to a lesser extent in gas and petroleum
prices. Also, collections of revenue from traditional tax sources have been
low. So we as a government are faced with a problem. One of the few options we
had was to increase land tax. We did that with regret, but we did it. As the
Treasurer has pointed out in various forums and discussions, even with those
significant increases, land tax rates in Western Australia are significantly
lower than those in the other states, including Tasmania. The rates are low.
The amount of land tax paid is well below that of the other states for most
categories of land tax payers; in the higher category of land values, it is
about equivalent. If a person owns $2 million or $3 million worth of investment
properties, they will pay a rate of land tax that is about equivalent to that
in the other states. If a person holds properties up to the value of perhaps $1
million to $1.5 million or thereabouts, they will still pay significantly less
than if they owned equivalent properties in other states.
I regret the impact on individuals.
I am sure that a number of people who have multiple properties will sell some
of those properties; they will rearrange their portfolios. That is the reality
we face.
Mr
M. McGowan : People now have to sell their properties.
Mr C.J. BARNETT :
That is the reality we face.
Mr M. McGowan interjected.
The SPEAKER :
Leader of the Opposition!
Mr C.J. BARNETT : That is the reality. We did not like doing it. We have had to do it. Would
it not be good if the Leader of the Opposition actually supported us to get a
fair deal out of the GST, instead of taking the other side?
answer it. The land tax increase on many property owners is high. We
acknowledge that.
Mr P. Papalia :
Ninety-seven per cent.
Mr C.J. BARNETT :
Yes, Wonder Boy! I will answer the question.
Mr D.A. Templeman interjected.
The SPEAKER :
Member for Mandurah, I call you to order for the first time.
Mr C.J. BARNETT :
So, with getting 30c in the dollar out of GST effectively —
Mr B.S. Wyatt : You've
always known that.
Mr C.J. BARNETT :
No—effectively, there is a unique system in the Australian —
Several members interjected.
Mr
C.J. BARNETT : Mr Speaker, I am attempting to answer the question. There is
a unique situation in the Australian Federation, whereby today we have the
commonwealth government basically taxing Western Australia to fund other
states. That is what is happening. That is a major impact of $3.7 billion a
year on state finances. Additionally, we have had a very large fall
particularly in iron ore prices and to a lesser extent in gas and petroleum
prices. Also, collections of revenue from traditional tax sources have been
low. So we as a government are faced with a problem. One of the few options we
had was to increase land tax. We did that with regret, but we did it. As the
Treasurer has pointed out in various forums and discussions, even with those
significant increases, land tax rates in Western Australia are significantly
lower than those in the other states, including Tasmania. The rates are low.
The amount of land tax paid is well below that of the other states for most
categories of land tax payers; in the higher category of land values, it is
about equivalent. If a person owns $2 million or $3 million worth of investment
properties, they will pay a rate of land tax that is about equivalent to that
in the other states. If a person holds properties up to the value of perhaps $1
million to $1.5 million or thereabouts, they will still pay significantly less
than if they owned equivalent properties in other states.
I regret the impact on individuals.
I am sure that a number of people who have multiple properties will sell some
of those properties; they will rearrange their portfolios. That is the reality
we face.
Mr
M. McGowan : People now have to sell their properties.
Mr C.J. BARNETT :
That is the reality we face.
Mr M. McGowan interjected.
The SPEAKER :
Leader of the Opposition!
Mr C.J. BARNETT : That is the reality. We did not like doing it. We have had to do it. Would
it not be good if the Leader of the Opposition actually supported us to get a
fair deal out of the GST, instead of taking the other side?
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