WA Budget Infrastructure Fund Key For Property Led Growth
The infrastructure focus in the WA Budget is welcome news for the property and construction industry.
“The announcement of a $5 Billion infrastructure fund and an expansion of the state asset sale program is essential for the property industry to participate in WA’s economic transition and growth outlook,” Property Council WA Executive Director Lino Iacomella said.
“The promised infrastructure fund should also be backed up with a state infrastructure strategy to enable the property investment and development sectors to plan ahead with confidence.
“We now look forward to the initiatives that the infrastructure fund would support, including key public transport projects like Max Light Rail.
“The state infrastructure fund would also work well with the federal Smart Cities Plan.
Iacomella however also said the Budget once again missed an opportunity to commence much needed tax reform in WA.
“After three successive years of property tax hikes it is disappointing that the budget has no plan to phase out land tax aggregation, which discriminates against investors that own more than one property. Similarly, this budget does not address the issue of seniors being stung by a hefty stamp duty bill when downsizing
or stamp duty equity for off-the-plan property purchases.”
“These measures are necessary to promote greater housing diversity, improve housing affordability, and promote high quality infill development. This would, in turn, boost productivity, create jobs and stronger communities, while driving the state’s economy.”
Source: News Release, Property Council of Australia, 12, May 2016