The Land Tax Battle Rages On
The Real Estate Institute of South Australia (REISA) formally presented its Land Tax Submission to the State Government last week.
The results of REISA’s Land Tax Member Survey and reaction by our Members representing a broad range of property ownership, unequivocally reveals deep concerns with aspects of the proposed changes to the land tax regime.
REISA President, Mr. Brett Roenfeldt said “Our members have never had such vocal feedback and concern expressed by members of the public on any issue as great as the land tax reform in living memory. This is truly an issue that has ignited a fire within our community and has very much affected the dreams and aspirations of mum and dad investors.”
“REISA strongly opposes the proposed aggregation reforms. We would very much encourage the State Government to engage with REISA and other relevant stakeholders in discussions concerning alternative avenues of property tax reform that might serve the dual purpose of not only securing revenue but also more equitably distributing the property tax burden on real estate proprietors.”
The main thrust of REISA’s recommendations in its Submission were:
- The State Government must not proceed with the current aggregation reforms
- The State Government must complete the Revaluation Initiative before progressing any land tax reform
- The State Government must examine the exemptions contained in the legislation to determine if the legislative intent of the purpose of land tax exemption is being fulfilled by the exempted landowner’s primary or dominant purpose of owning the land.
“We will continue to lobby strongly on behalf of our members for an end to these reforms. The effect on the real estate market in South Australia will be crippling and devastating. The inevitable outcomes of these reforms will be a state-wide devaluing of properties, a considerable increase in time on market, a massive upswing in vendor discounting and the increasing of rent which will put undue financial and social pressure on tenants and renters.”
“We strongly urge the State Government to rethink its land tax reforms.” Mr Roenfeldt said.