Today’s Anglicare Rental Affordability Snapshot is yet more evidence that the state government must leave property taxes alone this state budget according to the Urban Development Institute of Australia (UDIA WA).
“Housing affordability clearly remains a critical issue in Western Australia despite recent moderations in home values and median rents,” UDIA CEO Allison Hailes said.
“The latest Anglicare report is disturbing in that it finds very little affordable housing available to those that need it most,” Ms Hailes said.
“UDIA has called on the state government not to treat the property market as an easy target for revenue raising, particularly given this situation,” Ms Hailes said.
“It is critical to housing affordability in WA that there are no increases to land tax rates or stamp duty included in the budget,” Ms Hailes said.
“Increasing property taxes in the current market will only provide a short term, one off boost to government coffers, whilst hitting property buyers directly in the hip pocket,” Ms Hailes said. “That will inevitably have a flow on effect to the rental market.”
“Despite the fiscal challenges faced by the McGowan government, we don’t want to see decision making based on short term gains at the expense of the most vulnerable,” Ms Hailes said.
“It is important to encourage investment in housing to ensure the adequate supply of rental accommodation to the market,” Ms Hailes said.
“Ensuring that the right policy frameworks are in place to support those investing in the rental market is important to keeping good supply of rental accommodation to assist with affordability and availability of places to live,” Ms Hailes said.
“Looking at the longer term, UDIA’s state budget submission has recommended that the State Government undertake a comprehensive review of state based property taxes, including land tax and stamp duty regimes,” Ms Hailes said.
“We want consideration given to the establishment of a broader based land tax system which distributes property taxes more equitably, during this term of government,” Ms Hailes said.
“UDIA has also suggested that the eligibility and threshold criteria for Keystart loans is increased by 25% to enable more first home buyers into the housing market,” Ms Hailes said.
“Government at all levels has to take responsibility for the policies that they put in place that make the basic requirement of a safe place to live out of reach or at least a very challenging prospect for many people,” Ms Hailes said.
Ends
Find UDIA WA State Budget submission here
For more information:
Gemma Osiejak
UDIA WA Executive Manager Communications & Marketing
E: gosiejak@udiawa.com.au
M: 0421 506 819