“All hope of any form of compromise, such as a reduced rate, grandfathering or an increase in thresholds, seem to have evaporated when this Bill was tabled,” Mr Haese said.
“After promising widespread consultations, and nearly 200 submissions on the proposed land tax changes, we would have expected the State Government to take the concerns of businesses, investors and commercial and residential tenants into account.”
It is also clear that the State Government has rejected the South Australian Business Chamber’s recommendation to delay this bill until the completion of the Valuer General’s whole of state revaluation.
Mr Haese was disappointed the Bill retained a 2.4 per cent threshold, which would be introduced for landholders who owned property with a combined value starting at $1.098 million.
At this rate, an owner of a $1m property portfolio in South Australia would still be paying 46 per cent more land tax than the mainland state average.
“It would appear that without any form of compromise the Bill will have little chance of being supported by the Opposition or cross benchers,” Mr Haese said.
“This Bill could send long-term signals to local businesses and interstate and overseas investors that South Australia is not a stable and cost-competitive state in which to invest.”
The South Australian Business Chamber welcomes the State Government’s minor technical clarifications in the Bill, but this is well short of the meaningful policy changes which were suggested.
The South Australian Business Chamber will continue to represent the views of our members, who overwhelmingly reject the Bill’s suggested land tax reforms.
For further information or to arrange an interview please contact Verity Edwards on 0412 678 942.
17 October 2019
