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Protest over Land Tax Hike

Friday, May 01, 2009

How you can help stamp out land tax on your investment property

7pm on Wednesday 15th April saw the Norwood Town Hall bursting at the seams with around 1,000
people attending a forum where they expressed their dissatisfaction with the Huge Hike in Land Tax Payments. Senator Nick Xenephon chaired the public meeting and others on the panel of 8 well qualified speakers included the Leader of the Opposition Hon.Martin Hamilton Smith and  the leader of Family First Hon. Dennis Hood MLC.


It was tabled that South Australia has by far the highest Land Tax rates in the nation. As an example, an investment property worth around $500,000 attracted approx $1,700 in Land Tax, while a similar value property in Queensland would attract no Land Tax at all!  Some instances were quoted that the Land Tax on an investment property represented  30%, 50% and more of the income of a property. For a great number of self funded retirees who attended,  Land Tax has severely damaged their income and as a result some have had to apply to Centrelink for income support!

We also heard about a South Australian Investment Syndicate that has elected to invest $55 million dollars in Queensland rather than in South Australia because the Land Tax bill is $150,000 less every year. This means that in a short period of 7 years they would be over  $1,000,000 better off by not investing in our state. Other examples  quoted crippling Land Tax figures which just stunned me.

I went home after the meeting all fired up but still shaking my head. Why isn't the Government doing more to promote investment in our state?  Why isn't our State's Land Tax scale at least in line with the other States? What does the State Government have to do to get more investment happening and give self funded retirees a lower taxed investment income?

I did one last sorry act before I went to bed. I compared my own Land Tax bill  to a bill 14 months ago.  A whopping 80% INCREASE!  I did not sleep well that night. Maybe I'll feel better like all the others who attended this meeting after we vote at the State Elections in 2010..



Kevin Walter

ps
If you wish to know more or wish to contribute for the next meeting to be held in February 2010
 please email the Land Tax Reform Association of South Australia INC  c/- Mr John Darley   at john.darley@parliament.sa.gov.au
 

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