12.5% increase in the land tax rate
What they promised
The Liberals are committed to lifting the tax burden on Western Australian businesses to free up funds the can better be used to invest, expand, employ and innovate- The Liberals Small Business Policy, p 3
What they say now
A 12.5% increase in land tax rates from 2013-14- 2013-14 State Budget
27 Aug 2013 - The Barnett Government has increased the tax burden on business by announcing a 12.5% increase in the land tax rate.
A 12.5% increase to the land tax rate announced by the Barnett Government in the State Budget will affect business and investment property owners. It will raise an extra $338 million in revenue.
They have delivered on a promise to increase the payroll tax threshold but this will only delver a $121 million saving as compared the revenue that they will earn through the land tax increase.
A $121 million payroll tax cut for business, promised during this year’s State election campaign, is swamped by other revenue measures. Mr Buswell’s plan features several revenue slugs including a 12.5 per cent increase in the rate of land tax paid by 112,000 WA business and investment property owners, which will raise an extra $338 million over the next four years.
- The West Australian 9 August 2013
This is in direct contrast to their ‘The Liberals’ for Small Business Policy’ where they state that they are ‘committed to lifting the tax burden on Western Australian businesses to free up funds that can be better used to invest, expand, employ and innovate’. P3 The Liberals’ Small Business Policy
Since the promise was broken in 2013, land taxes have been raised twice more, in 2014 and 2015.
In 2014, land tax was raised by 10% to net the government an extra $334m over the forward estimates.
In 2015, the land tax scale was amended to add a new flat dollar amount to previously exempt land, adjust thresholds and increase rates. The amendment is expect to deliver an extra $826m over the forward estimates