Absentee tax a "cash grab": McGowan
Opposition leader Mark McGowan has lashed out at the WA Government's proposed extension of a metropolitan land tax to the regions, saying it would hit Margaret River "particularly hard".
Mr McGowan said the established Metropolitan Region Improvement Tax would apply to holiday homes and rental properties worth more than $300,000.
He also questioned whether income generated from the tax would go back to the city to help buy private land for public facilities.
"It is nothing but a cash grab by a Government desperate to try to fix its own financial mess," he said.
"Small business owners and rental property owners in Margaret River will be hit particularly hard."
Augusta-Margaret River Shire president Mike Smart said the proposal looked similar to a highly contentious rate variation proposed by the council more than eight years ago.
"They attempted to rate absentee owners at a rate higher than permanent residents," Cr Smart said.
"It was rejected by the Government, as was the council by ratepayers."
Planning Minister John Day said Mr McGowan's comments of a cash grab were "unfounded".
Mr Day said the tax would make up for a funding shortfall for the Peel and Bunbury Region Schemes and allow for more public project funding. "The MRIT cannot currently be used in regional areas and the regions are missing out," he said.
"A regional model would allow the State to purchase privately owned reserved land outside of Perth for parks, recreation, environmentally important bushland sites and major regional infrastructure projects such as roads."
Mr Day said the extension would ensure all regions benefited from the revenue.
Mr McGowan said the Government should reveal where it intended to spend the tax revenue.
"There is no guarantee that the money raised in specific regions would be spent in regional WA," he said.
Cr Smart said arguments supporting the tax appeared logical.
"The tax has provided some major infrastructure to proceed in a timely manner at a significantly reduced cost," he said.
"The Margaret River bypass road is one example of infrastructure needing to be funded to the tune of about $70 million by Government.
"I think it's probably about political point-scoring (by Labor) rather than concern for country people."
Farms, retirement villages, education centres, and religious and conservation groups are exempted from the tax.
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