House of Assembly
Fifty-Fourth Parliament, First Session (54-1)
54
1
Parliament of South Australia
House of Assembly
published
Answers to Questions
Land Tax
Land Tax
The Hon. S.C. MULLIGHAN
House of Assembly
Lee
Land Tax
1334 The Hon. S.C. MULLIGHAN (Lee) (11 September 2019). What is the estimated cost for each 0.1 percentage point reduction in the top tax rate for land tax by year, beyond the forward estimates?
The Hon. S.S. MARSHALL
House of Assembly
Dunstan
Premier
Land Tax
The Hon. S.S. MARSHALL (Dunstan—Premier): I have been advised:
The 2019-20 budget included a phased reduction in the top land tax rate of 3.7 per cent to 2.9 per cent from 1 July 2020. The details of this measure were presented on page 5 of the 2019-20 Budget Measures Statement.
As part of the measure the top land tax rate for the value of ownerships above $5 million was to be progressively reduced by 0.1 percentage point each year from 3.7 per cent in 2019-20 to 2.9 per cent from 1 July 2027.
The announced measure extended existing reforms to land tax which introduced a new lower marginal tax rate for the value of ownerships between around $1.3 million and $5 million from 1 July 2020.
The cost of this measure as contained in the 2019-20 Budget Measures Statement is outlined in the table below. The further 0.1 percentage point reductions in the top tax rate in years beyond the forward estimates (to 2027-28) were estimated to reduce forecast land tax collections by around an additional $3 million per annum (indexed).
| Budget Impact – Land tax phased reduction in the top marginal tax rate* |
|
2018-19 |
2019-20 |
2020-21 |
2021-22 |
2022-23 |
|
$m |
$m |
$m |
$m |
$m |
| Operating revenue |
— |
— |
-2.7 |
-5.6 |
-8.6 |
*Based on information available at the time of the 2019-20 budget.
The Land Tax (Miscellaneous) Amendment Bill 2019 includes a proposed immediate reduction in the top land tax rate to 2.4 per cent on the value ownerships above around $1.1 million from 2020-21. The cost of a 0.1 reduction in the top land tax rate (e.g. below 2.4 per cent) will be higher if the Land Tax (Miscellaneous) Amendment Bill 2019 is passed by parliament.