Perth Lord Mayor Basil Zempilas has issued a clarion call for significant tax reform, presenting a ten-point plan designed specifically to alleviate the immense financial pressure on Australians trying to buy their first home. In a detailed opinion piece, Zempilas argues that the current system is stacked against new entrants and requires urgent, bold changes to restore fairness and opportunity.
A Ten-Point Blueprint for Fairer Housing
Zempilas, a prominent media figure and the city's chief civic representative, contends that the dream of home ownership is slipping away for too many Australians. His proposed reforms target what he sees as the core of the problem: an outdated and burdensome tax structure. The central pillar of his argument is the need to abolish stamp duty for first home buyers, a move he believes would immediately remove a massive upfront cost barrier.
Beyond this flagship proposal, his plan is comprehensive. He advocates for a review and potential increase of the First Home Owner Grant to better reflect contemporary property prices. Zempilas also suggests implementing a broad-based land tax system to eventually replace inefficient transaction taxes like stamp duty altogether, a model that has been debated in several states for its potential to improve housing mobility.
Targeting Investors and Supporting Savers
The Lord Mayor's proposals aren't solely focused on removing costs; they also aim to rebalance the competitive landscape. A key recommendation is reducing the capital gains tax discount for property investors, which currently sits at 50% for assets held longer than twelve months. Zempilas believes adjusting this discount would help level the playing field between investors and owner-occupiers, potentially cooling investor demand that prices out first-timers.
To assist with the daunting task of saving a deposit, he proposes enhancing the First Home Super Saver Scheme. This would allow prospective buyers to salary sacrifice more of their income into their superannuation fund specifically for a home deposit, leveraging the tax advantages of super to accelerate their savings. Furthermore, he calls for the expansion of eligibility criteria for various first home buyer schemes to include more people who are currently locked out.
Broader Economic Reforms for Long-Term Health
Recognising that housing affordability is intertwined with wider economic policy, Zempilas's final points look at the bigger picture. He emphasises the critical need for policies that boost wages and foster stronger income growth, ensuring that saving for a deposit is a realistic goal. He also stresses the importance of disciplined government spending and maintaining a competitive tax system overall to ensure economic prosperity, which underpins a healthy property market.
The overarching message from the Perth Lord Mayor is one of urgent necessity. He frames these ten tax reforms not as optional tweaks but as essential steps to prevent an entire generation from being permanently locked out of home ownership. By reducing immediate financial burdens, rebalancing tax incentives, and fostering a stronger economy, Zempilas argues his plan provides a clear pathway to making the great Australian dream achievable once again.
