The Property Council has welcomed Treasurer Kevin Foley’s announcement that a Rann Labor Government returned for another term will reform the State’s land tax regime.
The Government has promised that it will raise the base land tax threshold from $110,000 to $300,000, with increases in the other thresholds to provide minor savings at the higher end. The Property Council also strongly supports the initiative to index thresholds to average land value inflation, providing more certainty to investors.
While this announcement indicates that the Government has heard the Property Council’s calls for land tax reform and accepts what a significant economic and budgetary issue it, and a boon to private investors, the proposed cuts provide limited relief to the commercial property sector, a critical generator of investment and employment.
We will continue to advocate to the major political parties the need for meaningful land tax reform that provides an economic boost to the state by encouraging further investment in the commercial sector. The Redmond Opposition has previously announced an increase in the base threshold to $250,000 and signalled that it might consider further reform.
The Government's announcement follows significant land tax reform in Tasmania, with that state's pending election driving a pre-election bidding war on tax.
See the attached media release for more information.
