The West Australian government is calling for public patience regarding potential changes to the state's stamp duty system, even as Perth's Lord Mayor intensifies pressure for urgent reform. Premier Roger Cook has responded to recent calls for action, emphasising the complexity of the issue and the need for careful consideration.
Zempilas Advocates for Immediate Stamp Duty Overhaul
Perth Lord Mayor Basil Zempilas has become a vocal advocate for reforming Western Australia's stamp duty, labelling the current system as an "inefficient and inequitable tax". He argues that the duty acts as a significant barrier for people trying to enter the property market or move to more suitable homes. Zempilas has publicly urged the state government to follow the lead of other Australian jurisdictions and investigate replacing the upfront lump-sum payment with a broad-based annual land tax.
His push places the issue squarely back on the political agenda, challenging the government to address what many see as a major hurdle to housing mobility and affordability. The Lord Mayor's comments reflect growing community and business sector concern about the impact of stamp duty on the state's economic dynamism.
Government Prefers Cautious, Consultative Approach
In response, Premier Roger Cook has acknowledged the debate but urged a measured approach. While not dismissing reform outright, his government is emphasising the need for extensive consultation and detailed modelling before any significant policy shift. Cook highlighted that stamp duty is a crucial revenue stream for the state, contributing billions to fund essential services like health, education, and infrastructure.
The Premier pointed out that any transition away from stamp duty would be a massive, multi-year undertaking requiring careful planning to avoid budget shortfalls and unintended consequences. The government's stance suggests a preference for incremental change within the existing system, such as the first-home buyer duty exemption, rather than a wholesale replacement of the tax.
Balancing Reform with Fiscal Reality
The core of the debate hinges on a fundamental trade-off. Proponents of reform, like Zempilas, argue that removing the upfront cost of stamp duty would free up the property market, encourage downsizing, and improve labour mobility. They often cite models from the Australian Capital Territory, which is in the process of a 20-year transition from stamp duty to a higher land tax.
However, the Cook government is acutely aware of the fiscal implications. Stamp duty contributed over $4.5 billion to state coffers in the last financial year. Transitioning to a new system risks creating a revenue gap or placing a higher ongoing tax burden on a different cohort of landowners. The government's call for patience underscores the political and economic difficulty of dismantling a long-established tax that provides significant, if volatile, income.
This developing story pits the urgency of advocacy for housing affordability against the complexities of state budget management, setting the stage for a continued and critical policy discussion in Western Australia.
