Shooters, Fishers and Farmers MP Rick Mazza is calling for land tax relief for to help soften the devastating economic blow being felt from the ongoing COVID-19 pandemic. Land tax is an annual tax on land not used as a principal place of residence.
Mr Mazza said because of the pandemic it could take years for a commercial landlord to find a tenant, and during that time the landlord has to pay the rates, insurance, land tax and all the other outgoings associated with a commercial property. “
For many commercial properties and the associated businesses, land tax can run into tens of thousands if not hundreds of thousands of dollars,” Mr Mazza said.
“If land tax relief measures are introduced, at the very least, the tenant gets a benefit, because they have a reduction of the land tax cost in their variable outgoings that they have to pay as part of their lease.
“In the event a commercial landlord does not have a tenant, the landlord is responsible for the payment of those variable outgoings, because they do not have a tenant to pay for them.
“If there is land tax relief, at least the landlord gets some relief on the costs of holding that property vacant, as would residential property owners who wear the land tax costs, regardless of whether or not they have a tenant.”
Mr Mazza noted the Urban Development Institute of Australia (UDIA WA) is seeking a land tax rebate and said the Government should look at other Australian States that have recently revealed similar measures.
“The Victorian Government has announced a $420m land tax relief package, the New South Wales Government a $440m package and the Queensland Government a $400m package,” Mr Mazza said.
We need to be doing everything we can to keep the WA economy going through this crisis, and to ensure industry can be salvaged once it is over.”