The Marshall Liberal Govenrment has welcomed the groundswell of community and business support for its historic land tax reforms, which will put $70 million back into the pockets of tens of thousands of hardworking South Australians over three years.
Paradise teacher Lynnette Deguglielmo, and her husband Dominic, who own several investment properties and currently pay land tax on an aggregated basis, say they will save thousands of dollars on their land tax bill under the proposed changes.
They are among the 92% of mum and dad investors in South Australia who will be better off under the Government’s land tax changes.
“We have felt penalised because we’ve had to pay such excessive taxes with the land tax,” Ms Deguglielmo said today.
“So I say good on you, Mr Premier, for looking to do something for the ordinary mum and dad investor so we don’t have to move into the pot of the pensions that should be there for people who really need them.”
SA Centre for Economic Studies executive director Michael O’Neil flagged signficant benefits for residential tenants who he said would, ultimately, have more disposable income to spend on services and in shops, because rents would rise less rapidly under the Government’s relief plan.
“Agregation is a principle that even industry supported,’’ Mr O’Neil was reported in The Advertiser.
“Most people do. In terms of an efficient taxation system and cost, which the business sector argues all the time that it needs, land aggregation is the best thing and you must reduce the rate quickly.
“There are a number of benefits, particularly for people renting properties. They often haven’t had wage increases or are on fixed incomes.
“There was a danger that an increase in land tax would obviously be passed on. There is no impetus now for landlords to increase rental charges.”
Commercial property experts and developers have also welcomed the Government’s decision to reduce the top land tax rate to an unprecedented 2.4% immediately from July 1, 2020, which will drive positive economic and jobs growth, boost consumer and business confidence and make SA a far more attractive proposition for investors.
Trevor Cooke, Commercial & General CEO said: “Our view is now that South Australia is by far the most competitive tax jurisdiction nationally.”
“When you look at the previous measures introduced in Parliament and you overlay that with the 40% reduction in land tax, you end up with what is the most competitive jurisdiction in the country.”
Property developer Harry Perks told InDaily: “To me, it’s a lot better than I thought it would be, and more in line with other states, which is what we needed”.
McGees Property Managing Director Simon Lambert told ABC News: “I don’t think anyone can say that a landlord who has been charging under market rent and because of a new tax impost they can suddenly put rents up.”