Mr. Wyatt questions the Treasurer about land tax increases since 2013 and potential amelioration measures. The Treasurer defends the increases, citing WA's low rates and past reductions, and states any changes would be announced in the budget.

AnsweredQoN 77Legislative Assembly
Asked
24 February 2016
Portfolio
Treasurer

QuestionView source ↗

LAND TAX — RATE INCREASE
77. Mr B.S. WYATT to the Treasurer:
I refer to the increase in land tax in the 2015–16 budget—being
the third increase in land tax since the 2013 election—that was passed
unanimously by the Liberal and National members of Parliament last year, and
reports in The West Australian that the Treasurer is now looking at ways
to ameliorate the impact of the recent rise.
(1) How is the Treasurer looking to ameliorate the obvious impact of
his land tax increases?
(2) What is the likely cost of any amelioration that is being proposed?

AnswerView source ↗

(1)–(2) We did increase land tax for
each of those three years, transparently, and we passed the legislation to do
that. This year we increased it, and in the previous two years, primarily, the
highest value rates, but we increased it across the board. I might add that
still, despite those increases, WA has amongst the lowest land tax rates in the
country. Indeed, in the Commonwealth Grants Commission process, we were
penalised $200 million a year for having below-policy land tax collections. In
most of the levels, let us say a $500 000 property, people whose property is
valued at that will pay substantially less tax this year than they did 10 years
ago. There have been very large reductions in land tax across the last 10 years
and our land tax rates are lower. We understand there have been substantial
increases, particularly with aggregations and in other ways and, as with all
tax policy, we keep it under review. If we were to announce we were to put in
train any changes, we would announce it in the budget. So, we get on with it.

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