Land Tax Relief for Businessess and Land Tax Reform
21 January 2010
On 10th December 2009, the Tasmanian Premier announced a package of Land Tax Reforms. The proposed legislation amendments will reduce the land tax rates for land holdings with an aggregated value of greater than $350 000, as well as provide land tax relief to certain shack owners, first home builders and home businesses from 1 July 2010.
These reforms included:
- a land tax rebate for eligible business land in 2009-10 (the Land Tax Rebate);
- a cap on land tax increases for eligible business land 2009-2011 (the Cap Rebate);
- a new Land Tax rate of 1.5 per cent, from 1 July 2010, for land values of $350 000 or greater;
- a Land Tax exemption for shacks with a land value up to $500 000;
- a refund, for up to two years, of land tax for first home builders. This provision will not apply until 1 July 2010 and members will be advised further on this provision;
- an increase in frequency of valuations to every 2-3 years to minimise land tax shocks; and
- a number of legislative amendments to be tabled in the next session of parliament.
The proposed legislation amendments will reduce the land tax rates for land holdings with an aggregated value of greater than $350 000, as well as provide land tax relief to certain shack owners, first home builders and home businesses from 1 July 2010.
The Land Tax Rebate for eligible businesses in 2009-2010 will be equivalent to the savings for owners of land used for business purposes, had the proposed reduced land tax rates been applied at 1 July 2009.
Additionally, for 2009-10 the increase in the land tax attracted by land used for business purposes will be capped at 100 per cent of the 2008-09 land tax liability. This Cap Rebate will extend into 2010-11 to ensure the increase in the land tax for the subsequent year does not exceed 200 per cent of the 2008-09 land tax liability.
Applications for the rebate opened on 7 January 2010 and will close on 7 May 2010.
A Factsheet, Public Guideline and Application Forms are all available from the SRO website www.sro.tas.gov.au
There are a number of eligibility requirements the owners of land used for business purposes will have to satisfy. However, any applicant experiencing difficulty in completing the application form can contact the SRO for assistance on the Land Tax Rebate Helpline (03) 6233 8070.
The Leader of the Opposition, Hon. Will Hodgman announced yesterday that the Liberal Party is committed to capping land tax and phasing it out by 2020. Full details are yet to be announced.
Michael Kerschbaum
Executive Director 21 January 2010
