Ballina MP calls on NSW Labor Government to reform land tax
Member for Ballina Don Page has called on the NSW Labor Government to urgently reform the land tax situation to take into account escalating land values, particularly on the North Coast.
In a speech to the NSW Lower House, Mr Page said that while the Government’s decision to increase the tax-free threshold from $330,000 to $352,000 was welcomed, it did not go far enough to alleviate the economic and social problems caused by land tax.
The NSW Office of State Revenue says land tax is a tax levied on the owners of land in NSW as at midnight on December 31 of each year. “In general, your principal place of residence (your home) or land used for primary production (a farm) is exempt from land tax,” the office says. You may be liable for land tax if you own or part-own:
- vacant land, including vacant rural land
- a holiday home
- investment properties
- company title units, or
- residential, commercial or industrial units.
Mr Page said the land tax rate of 1.7 per cent on land value beyond the threshold was driving people away from property investment, resulting in a myriad of problems.
“Land tax is a huge disincentive to people who are trying to become self-sufficient in their retirement by having an investment property as a nest egg so they do not have to rely on taxpayers in their later years, ” Mr Page said.
“Australia’s social security bill is already $63 billion-that is, 30 per cent of the entire Federal Government budget.
“Escalating property values over the past few years and an unsympathetic land tax regime have also meant land tax bills have skyrocketed.
“In many cases investment property owners are forced to up the rent. In the Ballina electorate renters cannot afford to pay any more in rent because of the generally low incomes of Ballina electorate residents.
“So everyone is a loser: property owners who cannot afford to pay their land tax bills, renters who cannot afford to pay an increase in rents, and people who are being discouraged from buying property to provide a future income in their retirement and thereby not be dependent on government.
“There is also the impact of large land tax bills on the availability of affordable housing.
“As fewer people see rental property as a desirable investment because of land tax, there will be less stock available to rent. This drives up rentals in available rental accommodation, further exacerbating the affordable housing crisis.
“The need for land tax reform is urgent, and I urge the Government to do much more about land tax because of its direct adverse effect on property investors and the longer-term implications for our community, especially our ability to encourage independent retirement and make housing more affordable.”
