The Government’s announcement that it will hit foreign residential property buyers with an extra 7% tax surcharge is very disappointing as it will jeopardise the property market and WA’s broader economic recovery, according to the Urban Development Institute of Australia (UDIA).
“UDIA is strongly opposed to the new foreign investment tax as it will stifle much needed foreign investment into this State, undermining the creation of new jobs and our economic recovery,” UDIA CEO Allison Hailes said.
“The fact that WA is one of the only States not to have a foreign buyers surcharge is a huge competitive advantage and we should be maintaining that to encourage more overseas investment, not turning it away,” Ms Hailes said.
“The residential property market in WA plays a major role in supporting our struggling state economy and this new tax on foreign investors will have a negative impact in the long run,” Ms Hailes said.
“To put a further impediment in the way of the small amount of foreign investment we have now will be detrimental to our property market recovery and its ability to provide a much needed stimulus to the broader WA economy,” Ms Hailes said.
“With market conditions as they are, we think it is imperative that the Government rethinks this flawed policy and instead works with industry to ensure that the urban development sector is supported in its role of building a prosperous future for WA,” Ms Hailes said.
“Without foreign investment into WA’s property sector we are likely to see further job cuts and less money flowing into the state’s economy from the land development, building and construction sectors, which will be much more damaging in the long run” Ms Hailes said.
Ends
For more information:
Gemma Osiejak
UDIA WA Executive Manager Communications & Marketing
E: gosiejak@udiawa.com.au
M: 0421 506 819