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  Abel Realty Pty Ltd
ACN 059 398 337
8 Greenhill Road, Wayville
P O Box 176, Glenside,
South Australia, 5065
Tel 1300 309 209
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Real Estate in Adelaide, South Australia

Land tax shot in the arm for South Australia

18 February 2005

The South Australian Government, which has been under pressure to ease land tax rates for more than 18 monthsA $245 million package has been announced to reduce land tax in South Australia, a move welcomed by the real estate industry which sees that the changes will help sustain the property market, particularly for small investors and families with a holiday home. The announcement is causing ripples in other states as government elections loom nearer and disquiet grows with property taxes everywhere.

The South Australian Government, which has been under pressure to ease land tax rates for more than 18 months, has just raised the tax-free threshold from $50,000 to $100,000, which effectively means that 44,000 investment property owners who currently pay land tax will no longer have to do so. The restructured scheme will be back-dated to January 1, with the state's 121,000 land-tax payers to receive a rebate over the next few months.

President of the Real Estate Institute of South Australia (REISA), Mr Robin Turner, said that land tax had been a key issue for the industry in recent times and that it was really starting to hurt the investment market.

“Land tax is a tax levied on an unrealised gain with no associated income, so for many people, this annual tax was starting to make them question the value of their investment,” he said.

“Also, families with a holiday shack were really feeling the financial burden of land tax so it's particularly encouraging to see that properties valued at less than $100,000 will now be exempt.”

REISA also welcomed the announcement that Bed and Breakfast operators will be able to claim relief from land tax, in direct proportion to the area used for the business, and that caravan and residential parks will be exempt from the charge. “There is no doubt that this relief will be widely welcomed by property owners.”

It is a relief homeowners would like to be feeling in Victoria, and NSW, where the high cost of land taxes are forcing people to dispose of their holiday homes. In Western Australia, with an election this month, the Real Estate Institute is lobbying for annual increases in land tax assessments to be limited.

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Readers should not act solely on the material contained in this news article.  The material contained herein is general comment only and not intended as advice on any particular matter.  All information is believed to be accurate, but no warranties or guarantees are given by the publisher, editor or authors.
 

 








   

 

 

 


 
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