Current Key Issues

An efficient and streamlined planning and environmental approvals system is imperative to the roll out of affordable land to the market.

UDIA has identified five key priorities for planning reform in WA:

• Integrated coordination of infrastructure and land use planning
• Improve environmental/planning coordination
• Streamline the administrations of schemes/structure plans
• Streamline development approvals and subdivision approvals
• Create a major projects pathway

The details on these issues are outlined in our submission to the state government on their current  Building a Better Planning System review.

UDIA has strongly supported the reintroduction of a Land Tax concession on titled lots held by developers on the 30th June each year for some time.  The concession was reintroduced by the Liberal Government in the 2009 State Budget in response to industry lobbying.

The land tax concession was originally implemented in May 1996 by the Court Government and later abolished under the 2003 Business Tax Review.

Land tax was calculated on the value of titled lots held at 30 June each year.  The Land Tax concession means that tax is paid on the ‘en globo value’ (unimproved value) of that land instead.

The tax was a barrier to land supply because developers manage their lot production to limit their tax liability.  With the tax calculated on the value of titled lots, developers would plan their supply of titled land so as little as possible was held at June 30.
This would cause a supply spike in April/ May as developers tried to shed titled lots and then a lag in June during tax time.  This caused land supply issues to the market around June each year.

The EPBC Act is a federal act protecting species of National Environmental Significance.  Species protected under the Act in WA include the Carnaby’s Cockatoo and Western Ringtail Possum.  If a development application is referred to the Federal Department of Environment, Water, Heritage and the Arts (DEWHA) under the Act then that development must undergo a federal environmental approval process on top of the state government environmental approvals process.
While UDIA appreciates the value of ensuring that endangered species are protected, we are supportive of a more strategic and coordinated approach to these environmental assessments.  It is imperative that local, state and federal government work together to ensure that developments are assessed in a reasonable timeframe against clear and consistent criteria.  To this end, more research and mapping is required to provide certainty as to where species are located and what vegetation and habitats are required to be protected.

Private industry is keen to be involved in opportunities to joint venture with government to develop social housing.  The combined federal and state government social housing stimulus package is an important element to ensure the continued supply of affordable housing to those in need.  This is particularly important in regional areas where key workers are competing for housing in areas dominated by mining workers. The increased competition and shortage of land and housing artificially inflates housing prices.

UDIA has been involved in progressing the introduction of Community Title in WA by participating in the Community Titles Advisory Committee.  The committee reviewed the land tenure legislation in WA with a view to consolidating and simplifying the legislation and allowing for the introduction of Community Title.
Currently, the Strata Titles Act (STA) is the only tenure creation legislation that provides for the establishment of schemes that create common property.  These schemes are confined to strata and survey-strata developments and do not extend to freehold subdivisions or developments with a mixture of tenures.  In mixed use developments, there is no capacity for the STA to cater for the different and sometimes competing interests of the different classes of owners.  

The proposed Community Title legislation would provide the flexibility for the establishment of one or more management bodies to manage common property within a community development scheme.

The proposed framework is a combination of existing and new principles which have been developed to address current needs.  Principles include:

 

• That there is a single Tenure Act for the creation of tenure
• that the Tenure Act provide for the extension of community development schemes to all types of land developments including freehold and leasehold subdivisions
• What the Tenure Act provide for one or more management bodies to be established within a community development scheme
• that the Tenure Act provide for the staging of community development schemes

The full set of principles is set out in the draft document and consider management rules appropriate to the type of community development scheme, that schemes can be terminated on the vote of less than 100% of affected owners and that there is one form of plan to create tenure.

While UDIA is supportive of the principles outlined in the consultation paper, the industry is concerned that the creation of a new Act may be overly ambitious and will delay the introduction of Community Title in this state for up to a decade.

The draft framework for new tenure legislation is now available on the Landgate website (www.landgate.wa.gov.au).