Shadow Treasurer Rob Lucas said today that massive increases in land tax in recent years were a major reason for Adelaide’s current rental housing crisis.
Over recent months the rental housing market in Adelaide has tightened considerably with official figures now showing rents soaring and vacancy rates the lowest since data collection commenced three years ago.
Mr Lucas said that November figures showing vacancy rates of only 0.5 per cent are also lower than comparable figures in most other states.
“The reality has been in recent years investors have sold rental housing properties because their returns were being eaten up by ever increasing taxes and charges especially land tax,” Mr Lucas said.
“The Rann Government was warned many times and again just before the March election by the Land Tax Reform Association of future rental housing problems unless the Rann Government reduced land tax collections this year.
“A number of investors at the protest meeting held in Norwood in February this year warned they would withdraw from investing in the rental housing market unless the Rann Government acted.
“Sadly for renters Mr. Rann and Mr. Foley have ignored these warnings.
“This year’s budget papers show a further 22 per cent increase in land tax collections after massive increases in the last four years.
“Mr. Rann and Mr. Foley continue to hold the mistaken view land tax only impacts on a small number of wealthy investors.”
Mr Lucas said that soaring rents and lack of rental accommodation are testimony to their arrogance and ignorance as they continue to ignore the many warnings they have been given.
“Renters in SA are now having to pay the cost.”
“The Liberal Party will ensure these issues are pursued early next year when the Legislative Council Select Committee on Property Taxes resumes hearings.”