People with investment properties in WA would be hit with a $270 levy under a McGowan Government plan to raise revenue and fix the Budget crisis.

The West Australian understands the tax will be linked to water rates and apply to tens of thousands of investment properties with a gross rental value of $24,000 or more.

The Government did not rule out the levy yesterday but refused to confirm any details.

“All options are being considered as part of the Budget repair process,” a spokesman for Treasurer Ben Wyatt said.

“Any announcements regarding household fees and charges will be before July 1.”

Sources say the levy will target those getting investment earnings of more than the median house rental, which is $380 a week in WA.

The State Government is expected to increase electricity and water charges and public transport fares by at least 6 per cent before it hands down its first Budget in September.

Camera Icon People with investment properties in WA would be hit with a $270 levy under a McGowan Government plan. Credit: WA News

“We have made, as a new Government, a range of savings measures,” Mr Wyatt told Parliament yesterday.

“I must admit I’m not enjoying making them, but the reality is everyone has to contribute and everybody will be looked to to contribute.”

He said further announcements on savings would continue until the Budget.

“For example, tariffs, fees and charges need to be announced prior to their implementation on July 1,” Mr Wyatt said. “I will be looking to all organisations and individuals in the community to help ... In terms of specific impacts on specific taxpayers, you’ll have to wait for the Budget.”

Premier Mark McGowan continued his hard line on the state of WA’s finances yesterday, saying tough decisions had to be made. “As you know, the financial position we inherited is catastrophic,” he said.

Mr McGowan has already moved to reduce the number of government departments from 41 to 25, frozen the salaries of politicians and senior public servants and introduced a maximum $1000 pay rise for others in the public service.