REIWA has slammed talk of introducing a $270 levy for investors as a means to help raise revenue and fix the State Budget as short sighted and irresponsible.
REIWA Councillor Suzanne Brown said it was extremely disappointing the industry was not consulted about this policy change.
“The private rental market is crucial to the provision of rental accommodation in WA, and this levy will only increase the cost of owning a rental property and make it a less viable investment option.
“With vacancy rates sitting at an all-time high of 6.5 per cent, WA investors are already doing it tough. Slapping them with an additional cost in an already soft market is a knee-jerk reaction that will do more harm than good,” Ms Brown said.
Details are yet to be formalised by the Government, but it is understood the $270 levy will be linked to water rates and apply to investors with a gross rental value of $24,000 or more.
“We appreciate the State’s fiscal position is challenging and some difficult decisions will need to be made, but the Government should be cautious of targeting property investors. Not only will it affect owners, but this has the potential to hit tenants if the cost of the levy is passed on,” Ms Brown said.
“Housing affordability is already a significant concern in Western Australia. Applying additional costs to the property market is not the answer and will only exacerbate the issue.”
