Tens of thousands of South Australian mum and dad investors will benefit from lower land tax bills as a result of the Marshall Government’s historic reforms, which deliver more than $200 million in total land tax savings over three years.
Under the changes, which came into effect in July, the overwhelming majority of non-trust investors (92%) and company groups (75%) will pay LESS land tax.
Claims made today by Labor’s Stephen Mullighan that ‘many of those affected face bill increases of between $1,000 and $10,000’ are simply alarmist and wrong.
Of the remaining few (8% of individuals) who will pay more due to aggregation changes, the Government has introduced a Transition Fund for 2020-21 which will provide full relief from any increase as a result of aggregation above $2,500 for eligible taxpayers.
Also, Mr Mullighan’s claim that land tax collections will increase by $85 million this year is wrong.
“While the Labor Party are busy trying to trick people with their desperate scaremongering, we are simply getting on with the job of delivering cost-of-living relief for South Australians,” said Mr Lucas.
“Our significant reforms will not only benefit 92 per cent of mum and dad investors and 75 per cent of company groups, we have massively slashed the top tax rate from a national high 3.7% to an unprecedented 2.4% – driving economic and jobs growth and business investment.
“Our aggregation changes have created a fairer, more equitable land tax system which means you can no longer hold $3 million in 8 separate companies and not pay a single dollar in land tax.
“Of the very small number of investors who will pay more this year due to the aggregation changes, the Government will provide 100% relief on any increase above $2,500* this financial year for eligible taxpayers.
“These positive reforms have been welcomed by a wide range of industry stakeholder groups, including the Property Council and Business SA, who acknowledge they will deliver a more competitive, investment-attracting environment for the state.”
*There may be limited number of people whose land tax bills rise due to a significant increase in their property value(s) ie not related to aggregation. Site values are determined by the independent Valuer-General. Relief under the transition fund is not available on increases in land tax bills due to higher trust rates of land tax that may be payable by certain trusts, or where the increase in the land tax assessment is above $102,500.
For more information on the Transition Fund: https://www.revenuesa.sa.gov.au/taxes-and-duties/land-tax/transition-fund