❓ Dr. Nahan questions the Premier about job losses due to the foreign investor surcharge impacting the Far East Consortium's Perth hub project. The Premier defends the surcharge, citing similar policies in other states and blames federal government policies and market conditions.
AnsweredQoN 384Legislative Assembly
QuestionView source ↗
PERTH
HUB PROJECT — FAR EAST CONSORTIUM
384. Dr M.D. NAHAN to the Premier:
My question is to the Premier—dressed
as he is!
I refer to the highly concerning
decision by the Far East Consortium to delay the construction of the $1.4 billion
Perth hub project. This delay will see 600 subcontractors lose their jobs as a result
of the foreign investor surcharge. How many jobs in the construction industry
need to be lost before the Premier recognises how destructive this tax policy
is?
HUB PROJECT — FAR EAST CONSORTIUM
384. Dr M.D. NAHAN to the Premier:
My question is to the Premier—dressed
as he is!
I refer to the highly concerning
decision by the Far East Consortium to delay the construction of the $1.4 billion
Perth hub project. This delay will see 600 subcontractors lose their jobs as a result
of the foreign investor surcharge. How many jobs in the construction industry
need to be lost before the Premier recognises how destructive this tax policy
is?
AnswerView source ↗
Before I answer the question, I would
like to make a couple of comments about this weekend. Firstly, Glory fever has
arrived in Western Australia. I congratulate the players of Perth Glory for their
glittering success over the course of this year in winning 18 games, and for
their success last Friday night, when they played an amazing game of football.
It was one of the most exciting sporting events I have ever been to in my life.
I congratulate all those people who made it happen, in particular, Tony Sage. I
thank him for his very kind comments in The Sunday Times last weekend. I
was pleased to be consoling him and giving him some advice from the depths of
my football knowledge last week. I congratulate Tony Popovic and the team for
their success during the year. I wish the Glory all the very best. I encourage
every Western Australian to get along and watch. We have record ticket sales
for a football game, but let us make sure that we go along and support the team
on Sunday.
I thank the Leader of the
Opposition for the question. Prior to the state election, we committed to a foreign
buyers surcharge. It was an election promise that we made.
Ms L. Mettam interjected.
The SPEAKER : Member for
Vasse!
Mr M. McGOWAN : We followed
the model that is in place in Queensland, New South Wales, Victoria and South Australia,
which is a seven per cent surcharge on foreign investors in residential
property in Western Australia. That surcharge is to ensure that foreign
investors make a contribution to the infrastructure that has been paid for by Western
Australians. We want to make sure that foreign investors contribute to the
infrastructure that they are the beneficiaries of. That was the purpose behind
the foreign investors surcharge. As I said, it is in place in other states.
In addition to what the state
government did, some changes have been made. Members might find that some other
things have occurred that may have impacted foreign investment in property in
Australia. The federal government put in place a 50 per cent cap on foreign
buyers in new developments, which will hit offshore developers hard and may
lead to a decline in development approvals. That was something the federal
government brought in. It may well be that that 50 per cent cap is having an
impact on projects such as the one the Leader of the Opposition mentioned.
Dr M.D. Nahan : There are no
investors.
The SPEAKER : Member!
Mr M. McGOWAN : The Far East Consortium is one of the
potential investors that was impacted by that 50 per cent cap. No doubt, that
federal government change has had an impact.
Mr M. McGOWAN : In addition,
the property market is not as strong as it was. It is a cyclical market and I am
looking forward to an improvement in coming years as the rest of the economy
turns upward. We had a huge increase in supply over the last few years, which
has taken some time for the market to soak up, but I expect that as the economy
improves, there will be some increase in activity as investors come back into
the marketplace.
like to make a couple of comments about this weekend. Firstly, Glory fever has
arrived in Western Australia. I congratulate the players of Perth Glory for their
glittering success over the course of this year in winning 18 games, and for
their success last Friday night, when they played an amazing game of football.
It was one of the most exciting sporting events I have ever been to in my life.
I congratulate all those people who made it happen, in particular, Tony Sage. I
thank him for his very kind comments in The Sunday Times last weekend. I
was pleased to be consoling him and giving him some advice from the depths of
my football knowledge last week. I congratulate Tony Popovic and the team for
their success during the year. I wish the Glory all the very best. I encourage
every Western Australian to get along and watch. We have record ticket sales
for a football game, but let us make sure that we go along and support the team
on Sunday.
I thank the Leader of the
Opposition for the question. Prior to the state election, we committed to a foreign
buyers surcharge. It was an election promise that we made.
Ms L. Mettam interjected.
The SPEAKER : Member for
Vasse!
Mr M. McGOWAN : We followed
the model that is in place in Queensland, New South Wales, Victoria and South Australia,
which is a seven per cent surcharge on foreign investors in residential
property in Western Australia. That surcharge is to ensure that foreign
investors make a contribution to the infrastructure that has been paid for by Western
Australians. We want to make sure that foreign investors contribute to the
infrastructure that they are the beneficiaries of. That was the purpose behind
the foreign investors surcharge. As I said, it is in place in other states.
In addition to what the state
government did, some changes have been made. Members might find that some other
things have occurred that may have impacted foreign investment in property in
Australia. The federal government put in place a 50 per cent cap on foreign
buyers in new developments, which will hit offshore developers hard and may
lead to a decline in development approvals. That was something the federal
government brought in. It may well be that that 50 per cent cap is having an
impact on projects such as the one the Leader of the Opposition mentioned.
Dr M.D. Nahan : There are no
investors.
The SPEAKER : Member!
Mr M. McGOWAN : The Far East Consortium is one of the
potential investors that was impacted by that 50 per cent cap. No doubt, that
federal government change has had an impact.
Mr M. McGOWAN : In addition,
the property market is not as strong as it was. It is a cyclical market and I am
looking forward to an improvement in coming years as the rest of the economy
turns upward. We had a huge increase in supply over the last few years, which
has taken some time for the market to soak up, but I expect that as the economy
improves, there will be some increase in activity as investors come back into
the marketplace.
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