Property Council launches “fair go” land tax campaign

The Property Council has launched a public advertising campaign seeking a “fair go” for property owners in the wake of proposed changes to land tax.

To assist their campaign, affected property owners can share their frustration and feedback at www.fairgolandtax.com.au.

Property Council SA Executive Director Daniel Gannon said the State Government’s changes could have a devastating impact on property owners and the economy.

“These changes will trigger a land tax tidal wave across the South Australian property sector, which will hurt ‘mum and dad’ and institutional investors alike,” he said.

“All we want is a fair go with tax settings in South Australia, which is why we’re taking up the fight to the State Government’s recently announced changes to land tax aggregation.”

From 1 July 2020, properties held in multiple trusts with the same benefactor(s) will be aggregated together. This means that land tax will be payable based upon the entire value of the portfolio, rather than on the individual value of each site.

“At the lower end of the market some residential investors will see rate rises of 2,000% or more, while commercial property owners may be forced to shift costs directly on to tenants – and therefore consumers – as they face unsustainable hikes in their land tax bills.

“Property owners in this state have been playing by the Government’s rules for years, holding their properties in trusts to lessen their exposure to the nation’s highest land tax rates.

“As it stands, we have the most anti-competitive land tax regime in Australia – a top rate that is 85% higher than in NSW and almost 65% higher than in Victoria.

“It’s not a fair system and it harms South Australia’s investment attractiveness – that’s why we’re standing up to do something about it.

“When these changes are combined with the Valuer-General’s statewide revaluation of all property, there is a perfect and painful storm awaiting South Australia’s economy, individual superannuation nest eggs and the property sector.”

 

Media contact: Daniel Gannon | E [email protected]