Western Australians will soon reap the benefits of a raft of tax reform measures introduced by the State Government, Treasurer Eric Ripper said today.
Mr Ripper said the swift passage through Parliament of the Revenue Laws Amendment Bills meant there would be significant savings for home and car buyers from July 1.
He said the Bills included a range of reforms and concessions that included significant cuts to stamp duty on residential properties and savings for people buying vehicles valued between $20,000 and $50,000.
Mr Ripper said there were also significant increases in the land tax threshold.
“This is good news for WA taxpayers and I am delighted the Bill passed quickly,” the Treasurer said.
“As foreshadowed in the Budget, these reforms will cut more than $2,800 from the cost of the average priced home of $457,000.”
Mr Ripper said the 2007-08 Budget had provided for motor vehicle duty thresholds on light vehicles to be increased in two tranches with a $5,000 increase on July 1, 2007 and a second $5,000 increase scheduled for January 1, 2009.
However, the second increase has now been brought forward to July 1, 2008.
“Taking into account both threshold increases, the duty saving on the licensing of a $30,000 car will be $450 or 30 per cent,” the Treasurer said.
Mr Ripper said land tax thresholds would also increase by an average 13 per cent across all thresholds - cutting the amounts of tax payable - while the two lowest marginal land tax rates applying to properties valued up to $2.2million had been reduced by 33 per cent.
And he said the Bills also included an amendment that meant taxpayers would no longer have to wait until the start of a new financial year for beneficial decisions to apply.
“Under these changes, Government announcements reducing taxation that are made in future Budgets will be able to be applied immediately on announcement,” Mr Ripper said.
“Taxpayers will not necessarily have to wait, as they have on this occasion, until July 1 for the changes to come into effect.
“We already have the most generous stamp duty concessions for first homebuyers in the country and I am confident our across-the-board cuts to stamp duty will really help homebuyers struggling with rising prices.”
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