Real estate industry welcomes news of land tax relief

7 February 2005

Real estate industry welcomes news of land tax relief The real estate industry has warmly welcomed the announcement of land tax relief by the State Government today saying that the changes will help sustain the property market in South Australia.

The Real Estate Institute of South Australia Inc. (REISA) said that the $245m relief package announced by the State Government today was much needed and would particularly help small investors and families with a holiday home.

REISA President, 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.”

“It's also great to see that these new rates of taxation are applicable for this financial year and people will receive a rebate on tax already paid.”

Mr Turner said that it was clear the Government was listening to the concerns of South Australians.

“As real estate professionals we hear the concerns of property owners every day and we have been conveying these messages to Government.”

“The new land tax structure represents meaningful reductions for all property owners, not just token measures and this is something that the Institute has been lobbying for over many years.”

“This rise in the exemption rate from $50,000 to $100,000 means that 44,000 property owners will no longer pay land tax.”

“For a property worth $200,000, the new rates will mean that the annual land tax liability will be $300. This is a saving of $225.”

“For larger properties such as business premises with a valuation between $600,000-$700,000, the saving can be as high as $2850 annually.”

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.”