The Real Estate Institute of Western Australia has made a submission to the WA state government ahead of the 2017 budget.

The REIWA is calling on the state government to implement a range of tax reforms designed to stimulate the WA property market, and help restore the state budget to surplus.

The REIWA is recommending five key areas of reform:

1. Maintain the existing transfer duty exemption for first home buyers at $430,000 and re-introduce the $3,000 FHOG for the purchase of existing dwellings.
2. Introduce a $10,000 concession on transfer duty for seniors over the age of 65 to encourage ‘right sizing’.
3. Undertake a state tax review to assess the viability of a shift to a broad-based land tax system that ultimately removes transfer duty.
4. No increase to transfer duty rates or change of thresholds.
5. Make no further changes to rates or thresholds for land tax.

REIWA President Hayden Groves said now is not the time to consider increasing property taxes, as the market is still experiencing challenging conditions.

“The slowdown in the resources sector has had a massive impact on the WA economy and property market. We’ve seen sales activity continue to trend downwards, with transactions approximately half of what they were a decade ago," he said.

"The state government should be introducing measures that encourage activity, not stymieing it with disproportionately high taxes,” Groves said.

“We understand the state government is in a difficult position when it comes to the state’s fiscal position," he said. 

"Our recommendations are aimed at helping to increase the levels of activity in the established residential market, which would ultimately mean more transfer duty revenue for the government,” Groves concluded.

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