Joe Lenzo |
Wednesday, 3 December 2008 1:00 AM |
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Within hours of the latest land tax assessments hitting the desks of property owners and managers around Western Australia, my phone started ringing.
I have heard of leaps - some bigger then 100% increases. All are hitting members as we brace for a down turn in the market, all are up on last year and all are an unwelcome increase in costs at an inopportune time.
We identified Land Tax as the next big bite of the apple at the May Budget. Estimates were for a 74% increase in land tax over the next four years. Unfortunately the latest individual assessments that I have heard about mean that this is likely to be a conservative assessment. Land Tax will take the mantle from Stamp Duty as the major revenue earner.
In anticipation of this spike in revenue the new government made some modest cuts in land tax scales. However, it has done very little to stem the revenue flood, we need a new dam wall, by way of a cap on land tax increases to control the damage.
The aggregation rules are putting the sting in Land Tax assessments, with entities that own multiple properties for assessment purpose being stung for the combined tax total. An inequitable situation, especially considering the current absence of a limit on the total revenues that can be squeezed from anyone individual or company.
We are currently working on a submission to the new Government to make sure that positive changes occur in the 2009 State Budget. We are also meeting with the Hon Troy Buswell soon on the effects of Land Tax and what can be done to reduce the pain in member’s budget lines.
In the next instalment of the blog I will report on the outcomes of that meeting.
Please feel free to share your tales of woe or add further comment on this issue below.
Joe Lenzo |
Wednesday, 3 December 2008 1:00 AM |
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