South Australian Land Taxes Up 60%

by Mary Swire, Tax-News.com, Hong Kong

20 October 2004

South Australia’s small investors and private businesses are bearing the brunt of “an explosion” in the country’s land taxes, which have risen 60% in the last three years, according to Liberal MP Julian Stefani.

Figures produced by State Treasurer Kevin Foley in response to a question from Stefani in the State Parliament revealed that private land tax payers forked out A$121.7 million in 2003/2004, up from A$76 million in 2001/2002.

Meanwhile, land tax on properties such as Housing Trust homes, schools, depots and offices grew from A$63.8 million in 2001/2002 to $81.3 million in 2003/2004.

A spokesman for Treasurer Kevin Foley explained that private land values have risen much faster than government-owned land in the last two years, pushing many residential properties into the top tax brackets.

However, observing that many of these properties were business and investment properties, Mr Stefani noted:

"These sky-rocketing land tax bills are yet another impost for businesses, both big and small, and will lead to reduced investment and employment in our state."

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