Comprehensive land tax reform that drive jobs growth, business investment and create a fairer and more equitable tax system will be introduced into South Australia, with the Marshall Liberal Government’s Land Tax (Miscellaneous) Amendment Bill 2019 successfully passing State Parliament tonight.
The Bill passed the Legislative Council with the support of Advance SA and the SA Greens, followed by the House of Assembly.
The significant reform package delivers $189 million in tax cuts for South Australian investors over three years – including land tax relief for thousands of smaller ‘mum and dad’ investors - and massively slashes the top land tax rate from a national high 3.7% to just 2.4%, which is equal to the average of all mainland states.
Treasurer Rob Lucas said the positive reforms – which have been welcomed by a wide range of industry stakeholders including the Property Council and Business SA – will deliver a more competitive, investment-attracting environment for the state, that will drive significant jobs and economic growth.
“This is a once-in-a-generation opportunity for significant land tax reform that will benefit South Australians now and into the future,’’ said Mr Lucas.
“This reform pacakge not only massively slashes the top land tax rate from a national high 3.7% to just 2.4% to create a more competitive business and investing environment for South Australia, but delivers a far more equitable and fairer land tax system.
“The Government has refused to compromise on its objective to introduce changes to aggregation rules in SA.
“This means that no longer will it be possible for an investor to hold $3m in property in 7 separate companies and not pay a single dollar in land tax.”
Social welfare organisations have also publicly supported the reforms, including Junction Australia, Housing Choices South Australia and Anglicare SA.
“Ultimately, this Government was elected to lead and bring about courageous reform for the benefit of all South Australians and this reform does just that.”