REIWA’s wish list

Avon Valley Gazette - - STATE ELECTION ‘ 17 -

No in­creases to State prop­erty taxes and com­mit to a State tax re­view At present, the trans­fer duty on a me­di­an­priced house in the Perth metropoli­tan re­gion of $ 520,000 is $ 18,715. Any in­crease to prop­erty taxes will di­min­ish af­ford­abil­ity and re­duce flex­i­bil­ity for trade- up buy­ers and down­siz­ers or re­siz­ers. Abol­ish land tax ag­gre­ga­tion. Ag­gre­ga­tion rules un­fairly pe­nalise in­vestors for own­ing mul­ti­ple prop­er­ties, as in­vestors are taxed on the to­tal ( ag­gre­gated) unim­proved value of their land hold­ings, not on each in­di­vid­ual prop­erty. A 50 per cent con­ces­sion to trans­fer duty on all off- the- plan apart­ment pur­chases. Apart­ments that are sold off the plan are li­able for trans­fer duty on the full sale price of the dwelling, while house and land pack­ages are typ­i­cally only as­sessed on the land com­po­nent. This cre­ates a dis­in­cen­tive to buy an apart­ment for ei­ther home own­er­ship or in­vest­ment. An ex­emp­tion to trans­fer duty for se­niors aged over 60 when ‘ right siz­ing’ from their pri­mary res­i­dence. High trans­ac­tion costs, such as trans­fer duty, de­ter se­niors from mov­ing from their ex­ist­ing dwellings, which are usu­ally larger homes, to ‘ right siz­ing’ into more suit­able dwellings to meet their chang­ing needs.

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