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.
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