The state government has been accused of a 'cash grab' over plans to tax property owners within the Scarborough Beach revitalisation zone who want to develop their land.
The state government and City of Stirling have committed $48 million and $53.4 million respectively to the $100 million revitalisation of a 1.6 kilometre strip along the northern suburb's beach front, due to be completed in 2018.
More WA News Videos
- Video duration
- 01:50
Scarborough Beach facelift
Scarborough Beach facelift
Scarborough Beach is undergoing a $101 million dollar facelift, set to transform the coastal suburb into one of Australia's best beachfront destinations. Vision: Nine News Perth.
Up Next
Scott Ludlam on Roe 8
- Video duration
- 01:19
- Video duration
- 01:19
Scott Ludlam on Roe 8
Scott Ludlam on Roe 8
A Senate inquiry has ruled that Roe 8 works are proceeding unlawfully - but the government disagrees.
Up Next
Michael Hussey 'we lose too many blokes too young'
- Video duration
- 01:39
- Video duration
- 01:39
Michael Hussey 'we lose too many blokes ...
Michael Hussey 'we lose too many blokes too young'
Former Australian Test Cricketer Michael Hussey calls on more men to look after their mental health.
Up Next
McGowan 'WA has been ripped off'
- Video duration
- 01:53
- Video duration
- 01:53
McGowan 'WA has been ripped off'
McGowan 'WA has been ripped off'
WA Labor leader Mark McGowan tells ABC 7.30 he will push for a better GST deal for WA. Vision: ABC.
Up Next
Pauline Hanson campaigns in Mandurah
- Video duration
- 02:20
- Video duration
- 02:20
Pauline Hanson campaigns in Mandurah
Pauline Hanson campaigns in Mandurah
Pauline Hanson has launched a campaign blitz in Mandurah, the first stop on a journey criss-crossing the state ahead of Saturday's election. Vision: Nine News Perth.
Up Next
Hanson campaigning in WA
- Video duration
- 01:03
- Video duration
- 01:03
Hanson campaigning in WA
Hanson campaigning in WA
Doing her bit to drum up support, Pauline Hanson is doing the rounds in WA ahead of Saturday's election, but there'll be some notable absentees. Courtesy ABC News 24.
Up Next
Dramatic police chase ends in crash for 'stolen' Jaguar
- Video duration
- 01:27
- Video duration
- 01:27
Dramatic police chase ends in crash for ...
Dramatic police chase ends in crash for 'stolen' Jaguar
A Camillo man has been charged with evading police through a number of Perth suburbs in the dramatic chase captured by WA Police's air-wing.
Up Next
Trevor Gleeson on Matt Knight's health
- Video duration
- 00:41
- Video duration
- 00:41
Trevor Gleeson on Matt Knight's health
Trevor Gleeson on Matt Knight's health
Trevor Gleeson says Matt Knight is a 50-50 chance to play in Sunday's final against Illawarra.
Scarborough Beach facelift
Scarborough Beach is undergoing a $101 million dollar facelift, set to transform the coastal suburb into one of Australia's best beachfront destinations. Vision: Nine News Perth.
Deputy leader Liza Harvey has previously described the development as WA's future jewel in the crown, with a beachside swimming pool and new bar and retail precincts expected to double visitors to the area.
Although funding for the project has been fully committed, the Metropolitan Redevelopment Authority is seeking to establish a development contributions plan that would charge around 1650 property owners in the 'development zone' an estimated total of $44 million.
Related Content
The fee would only apply to those wanting to subdivide or develop their land more than two storeys, and would be used to help off-set the City of Stirling's investment and further elements of the state government's Scarborough Master Plan, including streetscape upgrades.
But residents have labelled the proposed plan a "cash grab" claiming the state government and the City of Stirling are set to make millions in rates and stamp duty fees amid a likely boom in high-rise construction and urban in-fill following the project completion.
West Coast Highway resident of 25 years, Philip Reid, said he and the nine other owners in his 10-townhouse complex would be slugged nearly $50,000 each if they chose to redevelop their 3100 square metre block.
"This is a one-off grab, they're going to take $44 million and say thank you very much and then the money drifts off into the ether," he said.
"I delivered nearly 2000 flyers to letterboxes in Scarborough area telling people how much their contributions were going to be, and I've had dozens of phone calls from people that are outraged at what it's going to cost them."
The proposed development contributions plan is currently under review by the MRA after receiving more than 100 submissions during its public comment period which closed mid-February.
MRA chief executive Kieran Kinsella said the proposed fee associated with the plan would only be triggered if home owners wanted to develop their block.
"Landowners who choose not to develop their land will not be affected," he said.
"It is important to note that minor works and developments, which may include construction of a new single dwelling and small scale alterations or additional to existing properties are not required to pay a development contribution."
If the plan is approved, the fee would be calculated by land size multiplied by the maximum building height allowed under planning laws - meaning landowners would be charged for the maximum height allowance, regardless of whether they chose to develop - for example - three storeys instead of eight.
Mr Reid, 67, said he and his townhouse neighbours felt torn about the proposal and whether to develop or keep their 1970s beachfront properties as they are.
"That is under discussion at the present time, we have some people within our group that say it's all getting too much, let's move on and we've got other people saying let's put our shoulder to the wheel and fight it and stay here," he said.
"We're in a unique position where our complex can't be blocked out, but if someone was to build 12 storeys on our complex then they'd be blocking everyone behind us from ocean views."
Perth lawyer John Hammond told WAtoday he didn't think a development contributions tax should be imposed, with the state government historically reluctant to compensate landowners when their activities reduce property values.
"It's just wrong," he said.
"If the government decide to put in a four-lane highway down past your property, they're not going to compensate you for the loss of value... it's a one way street."
Mr Kinsella, however, claimed development contribution plans were a "long established component" of the WA planning system and used to seek equitable contributions from landowners who would benefit from government investment.
"The Metropolitan Redevelopment Authority oversees DCPs in a number of its project areas including Subi Centro, Forrestdale Business Park, Wungong Urban, the Armadale West of Rail precinct, Champion Lakes and in East Perth at Riverside," he said.
In 2015-16, the MRA recorded an income of $16.8 million in development contributions compared to $7 million in 2014-15 – but the authority was unable to break the figures down by project when asked.
The final Scarborough development contributions plan is expected to be adopted mid-2017.