Land tax up 60 per cent in two years

20 October 2004

Land tax paid by private property owners has increased 60 per cent in two years to $121.7 million.

While private land tax payments have grown by $45.6 million since 2001-02, the land tax paid by Government entities has risen by 27 per cent ($17.5 million) over the same period.

Liberal MLC Julian Stefani, who received the land tax information from Treasurer Kevin Foley following a question in State Parliament, said small-time investors and private businesses were bearing the brunt of "an explosion" in land tax.

In 2001-02, private land tax payers paid $76 million, rising to $90.7 million in 2003-03 and $121.7 million in 2003-04. Meanwhile, Government land tax on properties such as Housing Trust homes, schools, depots and offices was $63.8 million in 2001-02, rising to $66.7 million in 2002-03 and $81.3 million in 2003-04.

A spokesman for Treasurer Kevin Foley said the value of privately-owned land had increased at a much faster rate than Government-owned land in the past two financial years.

The spokesman said many Government entities were already paying the highest level of land tax, while many residential properties had been pushed into higher tax brackets as a result of the property boom.

Mr Foley has previously said he will examine land tax, along with all other state taxes, in the lead up to the next State Budget.

Mr Stefani said Government figures confirmed more and more private property owners were being pushed into higher land tax brackets.

He said the total value of sites contained in the second level tax bracket had risen 77 per cent from $2.6 billion in 2001-02 to $4.6 billion in 2003-04. That was largely due to residential and small business properties once valued below $300,000 rising above that figure.

"A lot of these properties are businesses and investment properties," Mr Stefani said.

"These sky-rocketing land tax bills are yet another impost for businesses, both big and small and will lead to reduced investment and employment in our state."

Reproduced from The Advertiser newspaper.