New push to pinch skilled workers from the east and bring them to WA

West Australian businesses should get payroll tax breaks if they successfully pilfer skilled workers from the east coast who remain in the state for two years.

The WA Property Council recommendation is a key pillar of its 2025 state election platform being presented to the Labor, Liberal and National parties later this week.

The payroll tax sweetener is aimed at increasing migration to WA.Credit: Paul Rovere

Under the council’s proposal, a business that successfully relocated an employee to WA for two years would be reimbursed the payroll tax paid.

The council estimated a business would be reimbursed roughly $11,000 for an employee on a $100,000 salary, which would help them offset the costs associated with relocation.

Property Council interim executive director Emily Young said the proposal would help address the state’s skill shortages – particularly in the home building sector.

“We need more workers to reach WA’s economic potential and give us a fighting chance in building the homes we need to house every West Australian,” she said.

“WA businesses have a unique challenge in recruiting skilled workers, given the appeal of high wages in our massive resources sector.

“There are also further restrictions on our state’s capacity to build the homes we need because of a large public works schedule.

“WA businesses need to be empowered to attract the talent we need from other states and territories.”

According to Australian Bureau of Statistics figures, WA is not having any problems attracting east coast and overseas migrants to the state, but that population growth is subsequently driving the state’s housing crisis.

Housing is shaping as a major policy issue ahead of the 2025 state election as the public housing waitlist continues growing and house prices balloon.

In the 12 months leading up to September 2023, WA had the fastest population growth rate of any other state at 3.3 per cent, compared to the next largest of 2.9 per cent in Victoria and the national rate of 2.5 per cent.

In that same period, WA’s population grew by 93,591. Nearly 15,000 of this increase were newborns, while 67,629 came from overseas and 11,233 were from interstate.

In that same period, only 14874 houses were completed.

The state government’s Housing Industry Forecasting Group predicts house builds will remain below the long-term annual average of 21,000 with a range of 16,000-18,000 in 2024-25, before a modest improvement in 2025-26 to 17,000 to 19,000.

The council’s payroll tax suggestion followed the WA Nationals’ commitment to boost the payroll tax threshold from $1 million to $1.3 million.

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