Your search has been limited to the first 30 items entered.
Author: REIWA President Damian Collins
REIWA has been a long-time advocate for stamp duty reform.
It is an inefficient tax that acts as a handbrake on the economy and is a huge
barrier to home ownership.
In the short term, it appears unlikely that major stamp
duty reform will happen in Western Australia. The Premier made it clear during
his 2021-22 WA Budget announcement that his government had no intention of
implementing major tax reform during the pandemic.
Whilst we can appreciate these are uncertain times and a
degree of caution is required as we transition to living with COVID-19 in the
community, it feels like a missed opportunity to take stamp duty reform off the
table altogether given the state’s enviable financial position.
One ‘quick win’ that would not require a major overhaul of
the entire tax system is removing stamp duty from small business sales (defined
as those entities with business assets worth less than $10 million or an annual
turnover of less than $5 million).
WA is one of the only states in the country that still
imposes stamp duty taxes on small business purchases. Victoria, New South Wales,
Australian Capital Territory, Tasmania and South Australia have all implemented
complete stamp duty exemptions for purchases of small business assets. It’s
time WA does too.
Stamp duty is an unnecessary cost burden for small
Whilst overall WA has been incredibly fortunate throughout
the pandemic, those who have been hit hardest by lockdowns and restrictions
have been small businesses. They need our support more than ever, especially as
borders open and some restrictions return.
Under our current laws, a buyer who purchases a WA small
business with assets worth $5 million is required to pay $251,415 in stamp duty.
If stamp duty on small businesses were to be abolished, the potential saving of
$251,415 could go towards employing five full-time staff members or training 10
As one of the only places in the country that still
collects stamp duty on business assets, we are creating a business environment
that is less competitive than the eastern states and placing a cost burden on
small businesses which discourages productivity and the entrepreneurial spirit.
It’s crucial the WA Government implement policies that
boost productivity. With more people making career changes than ever before, we
need to pave the way for those who want to have a go.
more information about the need for stamp duty reform in WA.
Port Hedland was WA’s top-performing region in 2021. Find out which other regional centres performed...
> Read more
Sales activity increased 19 per cent in Perth last week, with REIWA members reporting 997 transactio...
> Read more