Tourism Planning Taskforce Report - Western Australian Planning ...

Chapter 8Taskforce recommendationsowners may withdraw their unit from themanagement/letting pool and reside in it. Theachievement of an adjustment to the GSTpolicy ruling to exempt the purchase of units inbona fide tourist accommodationestablishments, as provided for in thetaskforce recommendations, will assist inencouraging investment in this sector of themarket.Recommendation 18That the Government make a submission tothe Federal Treasurer and the AustralianTaxation Office seeking a modification to GSTRuling 2000/20 so that strata titled 100 percent tourist accommodation developments onstrategic tourism sites subject to commonmanagement and letting arrangements areconsidered commercial residential premisesand thereby are treated similarly to hotels,motels and other tourist accommodationfacilities.PART 4.8.4 Additionalrecommendations8.4.1 Land taxThe taskforce has found that the effect ofrapidly increasing land tax in some regionalareas has had a disproportionate effect onlow-cost forms of tourist accommodation andincreased redevelopment pressure on thesesites to provide a greater income-earningpotential. It was considered that this had, andwould continue to have, a negative impact onthe range and accessibility of accommodationavailable, particularly in beachfront recreationareas.In addressing these conclusions, the taskforceproposed the use of a more detailed zoningstructure and other mechanisms to beintroduced as part of the comprehensiveplanning framework. Advice provided to thetaskforce from the Valuer General’s Office(2003) is that this will have a beneficial effectin reducing land tax increases for thoseproperties zoned for a specific tourismpurpose that generally is consistent with thecurrent use of the site.As tourist accommodation developmentsunder strata schemes generally achievesignificant reductions in the aggregate land taxpayable on such developments, relative to thesame developments held in a single entity, thetaskforce also has recommended that this bereviewed.Recommendation 19:That the Treasurer and Minister for Tourism beadvised that the taskforce considers that thecurrent land tax framework is considered tohave a negative impact on a considerableportion of low key tourist accommodationsites, and as such work against the StateGovernment’s objectives for tourismdevelopment and the retention of a variety oftourist accommodation.Recommendation 20:That the land tax system be examined, withthe objective of providing tax relief foridentified strategic tourism sites, includinglow-cost tourist accommodation facilities, andreducing the inequity associated with currenttaxing of developments subject to strataschemes relative to developments held undera single land title.8.4.2 Residential holiday homesThe high level of use of residential propertiesin some regional areas of the State as holidayhomes on a commercial basis, and theimplications of this for residential amenity andviability of dedicated tourism developments,was raised specifically with the taskforce.While noting the importance of the issue andthat it required further investigation, it wasacknowledged as outside the terms ofreference.Recommendation 21:That the issue of the commercial use ofresidential dwellings on residential zoned landfor tourism purposes be the subject of furtherinvestigation by the WAPC, in conjunction withlocal government, Western Australian LocalTourism Planning Taskforce Report85