LAND TAX BURDEN
5 Feb 2019
The new year brings The Australian Open, Australia Day and LAND TAX ASSESSMENTS.
The last two years have been very savage on commercial and retail property owners, with huge increases. The reason has been a boom in off-plan unit sales and therefore increased demand for sites from developers. Site values have risen, sometimes by a factor of 2 or 3.
The residential unit boom appears to be over but the sales evidence for this year’s land tax assessments is at 1/7/2018, when confidence was still high. There are signs the boom is over and we may see some forced sales of unit sites. If these occur prior to July we will see some relief next year.
Objections can be made to land values within 60 days of the assessment. The only valid reason, however, is a comparison with sales in the area.
Of course, the real point here is not the valuation but the policy. Property owners pay a disproportionate amount of taxation in this state. The State Government’s coffers are overflowing with Land Tax and Stamp Duty receipts.
Letters and calls to your local Member do matter, particularly just before an election - the model is not fair and local MPs need to know.