Land tax bills ‘discouraging property investment’
Large land tax bills are still discouraging North Coast residents from property investment despite the introduction of three-year averaging for land values, Shadow Minister for North Coast Don Page said today.
Mr Page said that while the averaging system was better than basing land tax liability on yearly fluctuations in land values, it would do nothing to encourage mum and dad investors to invest in properties, thereby helping to address the rental accommodation crisis on the North Coast.
“Under the NSW Labor Government, rental property investment has become a burden investors would rather avoid,” Mr Page said.
“In recent years the Government introduced a vendor tax and abolished the land tax threshold, causing investors to look at other investment options or to invest interstate.
“That mentality remains today and fewer people are purchasing rental properties which is adding to the affordable housing crisis in this area.”
Mr Page said Centre for Affordable Housing figures showed only five to 25 per cent of rental properties in the Ballina, Byron and Tweed local government areas had been deemed affordable.
“We need more people to invest in rental property to provide a return for them and help provide rental accommodation for tenants,” Mr Page said.
“It is also a good idea to ensure people have a nest egg for retirement, an important issue given the ageing of Australia’s population and our relatively high retirement demographics.
“Reducing land tax must be considered if we are to attract people back into rental property investment.”
