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  • REIWA survey reveals state property taxes a significant hurdle for home owners and investors

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    A recent REIWA survey* of WA property seekers found 90 per cent of respondents consider state property taxes a barrier to owning or investing in property.

    REIWA President Hayden Groves said the survey responses overwhelmingly illustrate state property taxes, like transfer duty, are a significant burden on home owners and investors.

    “The first policy reform we are campaigning for is that the over-reliance on governments on property taxes must stop. The community has had enough of increases to state property taxes. The results from our first survey clearly show these taxes are a deterrent to would-be home owners. Any move from the incoming government to further increase them would make home ownership and property investment less affordable and more difficult for West Aussies,” Mr Groves said.

    The REIWA survey demonstrated the benefits of leaving state property taxes unchanged, with 85 per cent of respondents saying they would consider buying their first or additional property if it was guaranteed property taxes, like transfer duty and land tax, did not increase.

    “It shouldn’t be underestimated the impact state property taxes have on the lives of West Australians. Any increase to taxes would see more people prevented from accommodating themselves in housing appropriate to their needs and circumstances,” Mr Groves said.

    REIWA’s second policy reform proposes land tax aggregation rules be abolished. Respondents were asked if removing these rules would change their perception of property investment:

    • 48 per cent said they would invest in more property if land tax aggregation rules were abolished.
    • 23 per cent said they would be more inclined to start investing in property.
    • 29 per cent said they would not change their investment decisions.

    “These results suggest 71 per cent of respondents would choose property as an investment if aggregation rules were abolished. The knock-on effect this reform would have on the economy is compelling. REIWA scenario analysis shows in the forward years, a lift in sales activity from abolishing aggregation rules would generate more revenue for the State Government from transfer duty and new land tax receipts, over the initial loss from abolishing land tax aggregation.

    “The three years of consecutive increases in rates and changes to thresholds has made land tax aggregation rules a bigger financial burden for property owners, which is passed onto businesses around WA affecting jobs and growth,” Mr Groves said.

    The survey also asked respondents to explain what their biggest concerns and hurdles were to owning or investing in property.

    The top three hurdles identified were:

    1. Transfer duty, land tax and capital gains tax.
    2. Acquiring finance/savings to be able to afford a property.
    3. General cost of housing.

    “The results of our survey clearly demonstrate property is an important election issue. Property helps grow the local economy and secures the future of West Australians. The public have told us they’ll continue to grow the economy through property ownership and investment, provided property remains accessible and affordable.

    “REIWA calls on all political parties to tell their community what their stance is on abolishing aggregation rules and ruling out any increases to state property taxes,” Mr Groves said.

    Read more about REIWA's State Election campaign.

    Campaign survey results - week one

    REIWA State Election Survey Results Infographic|Week One

    *Total sample size of survey: 455 (only analysed respondents from Australia). Confidence level 95 per cent, margin of error five per cent.