In its May State Budget, the WA Labor Government announced that it would follow the other states and hike stamp duties on foreign buyers of residential property to 7% from 1 January 2019 – a move that would raise $120 million for the State Budget over four years.
The move was staunchly opposed by the property lobby, which claimed damage recovery of the state’s property market – a view that has the backing of the WA Coalition, which has blocked the measure in parliament. From The West Australian:
Shadow treasurer Dean Nalder said the Liberal Party would not support the measure because it would hurt WA’s fragile housing sector…
“What we have today is the Liberal and National parties choosing to side with foreign property buyers over the families of WA,” [Treasurer Ben Wyatt] said.
“Once again, the Liberal and National parties have decided to ignore the financial problems they left the state and simply increase the burden on WA families to fix the mess that their financial mismanagement created.
Raising WA’s stamp duty surcharge to 7% would merely have brought its rate into line with NSW (8%), VIC (7%), QLD (7%) and SA (7%).
It is excellent policy as it would dampen foreign demand (at the margin), improving access for first home buyers, while also providing the State Government with $120 million of revenue over the next four years that could have be used for the benefit of the resident population.
Sure, WA’s property market is weak and this measure would slow the recovery at the margin, but it would also place the housing market on a more sustainable footing in the longer-term and ensure that housing remains relatively more affordable for WA residents.
Poor form Coalition, who caved in to the property lobby rent-seekers.
