The South Australian Business Chamber Calls For Land Tax Aggregation To Be Delayed

The South Australian Business Chamber Is Warning That A Trifecta Of Land Tax Issues Is Creating A Black Hole Of Uncertainty And Damaging Business Confidence, And The State Government Needs To Act To Avoid Further Damage To South Australia’s Economy.

The South Australian Business Chamber Is Tomorrow Releasing Its Position Paper On Land Tax Aggregation, Which Shows That 60 Per Cent Of The Owners And Operators Who Took Part In Its Recent Survey Would Be Impacted, And 76 Per Cent Of Those Would Be Forced To Sell Their Commercial Or Residential Properties As Part Of An Asset Restructure If Subjected To The Proposed Land Tax Aggregation Changes.

The South Australian Business Chamber Is Calling For The State Government To Delay Any Form Of Land Tax Aggregation Until All Cycles Of The Valuer General’s Revaluation Process Have Been Completed. The South Australian Business Chamber Also Wants To See A Further Reduction To The Proposed Top-Tier Land Tax Rate Of 2.9 Per Cent, To Be Introduced In Seven Years’ Time, Because It Remains Uncompetitive Compared To Most Interstate Markets And Threatens The Livelihoods Of Small Business Tenants And Property Owners. 

The South Australian Business Chamber Chief Executive Martin Haese said more than 60 per cent of the owners and operators who took part in the South Australian Business Chamber’s survey owned one or more properties, showing it was a common form of investment for the state’s business community.

​“The results show us that land tax aggregation changes will affect the whole state – from retailers who lease their space to truck drivers who might own their workshop, and mum and dad small business owners who have diversified their risk by buying a rental property,” Mr Haese said.

​“In the past, property was considered a safe investment option for our retirement savings and to diversify risk, but business owners across the state are telling us they’re going to sell their assets and many are even considering investing interstate, because they can’t afford to absorb the land tax aggregation increases.”

Mr Haese said the state’s businesses were facing a triple whammy of property revaluation increases, land tax aggregation and an uncompetitively-high rate being charged, all of which threatened confidence.

​“This trifecta will put pressure on the entire state’s economy, including property owners flooding the market with commercial and residential properties, developments being put on hold and supply chains being disrupted,” he said.

​“If the government doesn’t act now to delay the introduction of the tax or introduce a rate competitive with the other states, South Australia’s business community will suffer significant damage at a time when they’re still facing high operational costs.

​“Businesses need certainty, and with a revaluation process underway along with threatened tax hikes, there is a black hole of uncertainty facing the state.”

To read the Land Tax Aggregation paper, click here.

For further information or to arrange an interview please contact Verity Edwards on 0412 678 942.

21 August 2019