Reduce land tax says council
Thursday, April 23, 2009Whyalla City Council chief executive officer Phil Cameron has recommended that the council lobby the State Government to change the law in relation to land tax. Councillors will discuss his report during their monthly meeting tonight. Mr Cameron said the arrival of the annual tax bill is always a nasty surprise for investors which could discourage further investment in the property market. He said increase in land tax due to a rise in property valuations will cause some people severe financial hardships. "Many people with more than one property are just 'mum and dad' investors buying a holiday home or a rental property as an investment," Mr Cameron said. "This may cause financial hardship, particularly for self-funded retirees and small investors. "Commercial and investment property owners are also being hit with higher land tax bills. "Any rise now comes at the worst possible time for businesses, who are currently battling a consumer slow down and investors who have been stung by the plunge in share prices and superannuation. "The council is seeking the State Government to lift thresholds from $110,000 to $250,000 and the maximum from $1 million to $2.5 million at a rate of 2.5c per dollar. "To enable regional South Australia to remain competitive and entice investment during this time of economic uncertainty, Local Government as an industry should support that Property Council of South Australia's pre-budget submission 2009/10 to the South Australian Government in the area of land tax reform."
