21/03/06
Premier Alan Carpenter and Treasurer Eric Ripper today announced that the State Government would abolish three more taxes worth $924million over five years as part of its State Tax Review.
"Abolishing stamp duty on mortgages, hiring transactions and non-real business property means this Government has committed to scrapping 11 taxes since 2001," Mr Carpenter said.
"Combined with previous tax relief measures the total annual relief provided to Western Australians is $690million in 2006-07."
The Premier said stamp duty on mortgages would be halved on July 1 this year, and completely abolished by July 2008.
"The saving for borrowers will be about $65million in the first year, and $150million per year from 2008-09," he said.
"This means that a homebuyer taking out a $300,000 mortgage will save $750 and a small business borrowing $500,000 will save $2,000 in duty.
"Also, from January 1, 2007, stamp duty on hiring transactions will be completely abolished.
"The savings for businesses such as video and DVD stores, party hire proprietors, car hire companies and household and construction equipment hire firms will be in the order of $37million per year. These savings are expected to flow to consumers."
The Government has also committed to abolish stamp duty on the sale of 'non-real' business property such as goodwill, intellectual property and statutory licences, from July 1, 2010.
"Savings to the community from abolishing duty on 'non-real' business property are estimated at $90million per year in today's dollars," Mr Carpenter said.
Mr Ripper said the three taxes being abolished were listed for 'review only' under the GST agreement with the Commonwealth. WA had already fully honoured its commitments to abolish taxes under the agreement.
"The decision to abolish the taxes came after consideration of public submissions to the State Tax Review, early feedback from the State Tax Review Reference Group, and weighing up the need to provide essential services and infrastructure," the Treasurer said.
"This work showed clear support for abolishing these three taxes.
"It is only the beginning of the process with the State Tax Review's Interim Report to be released for public comment at the time of the 2006-07 Budget."
Public comment on the Interim Report will enable the State Tax Review to make its recommendations on reform of the State tax system for the next five years.
State taxes abolished since 2001
The abolition of stamp duty on mortgages; stamp duty hire of goods; and stamp duty on non-real conveyances builds on the Government's previous substantial tax cuts. All up, tax relief measures implemented by the Government since 2004-05 will deliver an estimated annual benefit to WA taxpayers of about $690million in 2006-07 rising to $1.1billion in 2010-11.
Premier's office: 9222 9475
Treasurer's office:9222 8788
