Commenting on the story: State of stagnation: Govt warned of looming market “catastrophe”
I met with my accountant last week, and my land tax bill is set to rise from $25,000 to $180,000 per year, based on the proposed aggravation measures.
3.7% top tier is ridiculous when residential property returns are around 5%. Add Emergency Services levies, increased council rates and the like and all of a sudden, owning property is not viable.
Heard Vickie Chapman expressing her views at a meeting at The Feathers and prominent SA property developers said even the talk of its implementation is crippling growth in our state.
There needs to be a fairer, more balanced weighting of land tax reform, not aimed at crippling those who “followed the rules”. She seemed to agree on all points.
One developer at the meeting who employs 500 people said trades people were coming into his site offices daily looking for work. He said he hasn’t seen it so bad.
He also said his new projects have attracted zero interest from buyers since the land tax announcement.
One hotelier in the room said he would advertise his room rates showing the land tax amount as an addition.
We needed Rob Lucas in the room. If he pushes his misguided, poorly calculated proposal, it will lead the state into recession and without doubt, topple the Liberal government.
What does Rob Lucas care, he’s a one-term politician finishing up at the next election.
Another person in the room said a new Liberal Party was being formed called: ’The True Liberal Party” with many current members appalled by this current government’s arrogance.
Many investors I know are contemplating mass sell-offs. This will cause a property crash and lead to recession.
It will also guarantee the Liberal government will not see another term in government.
The government needs to quell the problem now, before it festers any further.
This is not about ‘taking from the big end of town’. Those that know the numbers know it will hurt all and sundry. The calculation of $40 million in added revenue in grossly under estimated.
One lawyer friend I spoke to on the weekend said his client in the convenience business anticipated a $4 million increase alone!
Also, the revaluation of properties will mean the actual impact of land tax is even greater than forecast.
The government should wait to see how these re-valuations impact on land tax revenue then re-assess before implementing any changes including making the impost fair and even, not targeted at those who drive the economy.
The revaluations alone will generate enough added tax. – Kim Baker
Whilst the change to land tax announced in the State budget introducing aggregation is touted as being in the interests of fairness and levelling the playing field, in reality it is anything but that.
That is from the point of view of the tenant.
Two tenants can be renting a property with an equal land component; let’s say $500,000.
Let’s say both tenants are in SA . One could be subject to land tax of $545 (in the case where it is a single holding) and another at $18,500 per annum where the holding is over the top threshold of $1.3m.
Is that equity? I can’t imagine anyone seeing equity in this arrangement.
And let’s say the landholders are interstate, let’s say Queensland; the tenant of a single property in Queensland is subject to no land tax, and where the property forms part of a holding of $1.3m it is subject to land tax of $4000, as opposed to over $18,000 in South Australia.
Is that equity?
For the Treasurer to say that SA ‘would not be nationally competitive’ is perhaps one of the greatest understatements of the year.
Why would anyone who has a choice invest in SA?
And I might add, my email to Rob Lucas of about 6 weeks ago is still unanswered!
Unfortunately, I see a one term Liberal government in SA. – John Wyk
Commenting on the article: Cashing out: Powerful backers back away as Libs’ battle with the base flares
In the forty five years I worked with kids, I never missed the opportunity to talk up the importance of them becoming involved in Australia’s democratic processes.
I spoke with them of the need to be informed; to respect the institutions and to put in the hard yards to keep our democracy healthy.
I now feel like a complete idiot. All one needs to prosper is $5000 to get “the ear” of a politician.
Sorry kids. I should have spent more time on oligarchies. – Grant Ley
I am very disappointed with the conduct of the Marshall Govt, seems they’re all about cutting spending.
Local rego offices, city metro centre – come on, consider the people who voted you in.
Governments should not privatise essential services; it’s a government responsibility to provide essential services.
Also, governing is not all about getting the budget into surplus. Budget management sure, but the land tax on existing ownership – like the Labor franking tax – listen to the stakeholders. Consider grandfathering.
These changes just stifle progress, not encourage it.
Come on Marshall, show some leadership and jump on your ministers to stop this petty stuff. – Rick Semler
Commenting on the article: Liberal Right shows might as ‘post-Pyne’ era begins
Have you noticed just how few women’s names featured in the SA Libs’ Brave New Right Wing World? – Helen Chadwick
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