New West Australian tax on investment properties proposed

Investment properties could be hit by new tax

 

Investment properties may be hit by new tax under McGowan Government plan

People with investment properties in WA would be hit with a $270 levy under a McGowan Government plan to raise revenue and fix the Budget crisis.

The West Australian understands the tax will be linked to water rates and apply to tens of thousands of investment properties with a gross rental value of $24,000 or more.

The Government did not rule out the levy yesterday but refused to confirm any details.

“All options are being considered as part of the Budget repair process,” a spokesman for Treasurer Ben Wyatt said.

“Any announcements regarding household fees and charges will be before July 1.”

Sources say the levy will target those getting investment earnings of more than the median house rental, which is $380 a week in WA.

 

$270 one off? Or per year?

 

Well they have to do something because they're bleeding GST. It's an interesting proposal, making investors pay. If they make it part of the rates/water bill does that mean we can claim as an expense?

Post #1,000!

 

You are right. It is only $270 per rental property but that could easily be 1 week of rent for a low value property.

I imagine that a WA levy will become tax deductible.

 

True, but the article does mention that
"Sources say the levy will target those getting investment earnings of more than the median house rental, which is $380 a week in WA."

 

From the article:

The West Australian understands the tax will be linked to water rates and apply to tens of thousands of investment properties with a gross rental value of $24,000 or more.
​

GRV of $24k roughly equates to $461 pw rent. In theory this should mean that the levy would not apply to low rent properties.

Its an interesting one. I will have to check my rates to see what the GRVs of my properties are.

 

Yeah, interesting. Same article also claims it will target properties with a gross rental value of $24,000 or more, which means the article lacks internal logic. Fake news?

 

Nah, just journalist maths..

 

annual by the sounds of it.

 

Dumb idea....as it will further depress the Perth market......

 

Cant help but summise, a government attempting to tax itself into prosperity is akin to a man standing in a bucket and attempting to pick himself up...

Blacky

 

These slugs on investors will increase as its an easy target...Higher duties, land tax and surcharges...A wealth tax by any name. NSW did it years ago with trust deed duty. Its $500 when Vic is $200 and other states its $0.00.

 

I am not buying in Perth at the moment, but would agree dumb idea.

 

Someone was too slow

New West Australian tax on investment properties proposed

 

Someone was too slow

Investment properties may be hit by new tax

 

Hopefully the GRVs will come down to reflect the market – Is it every two years these are reviewed? We have been sitting through paying super high rates on some investments due to calculation on a GRV that far exceeds our rental income.


Tried to appeal this, however…. bump bow… basically the response was we just have to ride it out.


Of course, combine this with inevitable rate increases from the banks…if one more Politician says “if you don’t like it – just change banks” without considering the Perth market drop and not being able to change banks due to the lower vals and service calculators…… I am getting my cranks on now......

 

Can an annual one off payment of $270 really depress a market ?

 

Might be the last straw for a very depressed market....people might get out....time to run in?

 

If an annual payment of $270 is an affect on anyone you're doing something very wrong.