Following the passing of legislation today to allow the state government to introduce a Foreign Owner Duty Surcharge on residential property, the Urban Development Institute of Australia (UDIA WA) has called on the government to delay the introduction until the property market has recovered from the current downturn.
“UDIA has been calling for the cancellation of the introduction of a Foreign Owner Duty Surcharge or ‘foreign buyer’s tax’ since it was flagged in the state budget last year given the detrimental impact it will have on the property market recovery in WA,” UDIA WA CEO Allison Hailes said.
“The WA property market is in the very early stages of recovery and, given foreign investment in the property market is integral to the success of the market and the wider WA economy, we have strongly urged the government to reconsider the imposition of a tax that directly detracts from investment in WA property,” Ms Hailes said.
“Despite our best efforts, the government has progressed to pass the legislation and we now implore them to defer the introduction of the surcharge until the WA property market improves,” Ms Hailes said.
The tax is intended to come into effect in January 2019.
“Given surcharges such as the one proposed are generally used to dampen ‘hot markets’ we are extremely concerned that any new tax or charge, such as the FBS, will have a detrimental impact on the potential market recovery in WA,” Ms Hailes said.
Ends.
For more information:
Gemma Osiejak
UDIA WA Executive Manager Communications & Marketing
E: gosiejak@udiawa.com.au
M: 0421 506 819