The Real Estate Institute of Western Australia (REIWA) is unhappy with the Australian Labor party’s plans of wanting to tax foreign buyers in the future.
REIWA president Hayden Groves in a statement on Monday said he was surprised by the additional tax charge for foreign buyers was announced by Labor reps on Sunday. as it was done without seeking the advice from the industry first on the repercussions of such a move.
“Politicians view property taxes as an easy way to raise funds to pay for something else without proper regard for the impacts on the community.
“Introducing an additional four percent residential property tax on foreign buyers is another example of politicians bleeding property for political point scoring,” Groves said.
Currently, WA is one of the only states that does not tax foreigners for purchasing a property.
“Foreign investment in WA represents a tiny proportion of the market, and this type of misguided policy will dampen the incentive for foreigners who are not permanent residents to locate and live in WA.
“In the longer term, the impact of this surcharge on foreign investment will be felt by tenants, who will bear the brunt of increased weekly rent prices due to lowered stock levels,” Groves said.
In contrast, the Colin Barnett Government which represents the Liberal-Coalition last week announced they will not advocate any no new property taxes, not increase current taxes and introducing a transfer duty concession for seniors over 65, if they were re-elected into the state government on March 11.
“It’s disappointing to see the Labor party blindly follow in the footsteps of east coast state governments, where foreign investment is high, with no proper consideration of the impact this will have on the WA property market,” Groves added.