Land Tax

The Hon. T.J. STEPHENS (14:47): Can the Treasurer update the chamber on the response he has had to the recently released land tax reform package?

The Hon. R.I. LUCAS (Treasurer) (14:47): I am delighted to respond to the honourable member's question. The Premier and the member for Hartley, the Speaker, this morning, I think it was—the early hours of this morning—did a joint press conference with a teacher from Paradise and her husband, Lynnette Deguglielmo and her husband Dom, who own several investment properties and currently pay land tax on an aggregated rate. They are an example of the 92 per cent of individuals who will be better off as a result of the government's announced land tax reform package. They say, and they would know their details better than I would, that they will save some thousands of dollars as a result of the introduction of the government's policy.

These are some examples of the mum-and-dad investors who have worked hard over a long period of time; have several investment properties, residential properties; are earning rental income; and, contrary to the claims being made that in some way the government's policy was going to drive everyone to sell them because no-one could earn an income on properties which are aggregated and paid land tax, this couple is an example of people, the many thousands, who currently do so and will receive a benefit, as they say, of some thousands. Let me quote them directly:

We have felt penalised because we've had to pay such excessive taxes with the land tax…

So I say good on you, Mr Premier, for looking to do something for the ordinary mum and dad investor so we don't have to move into the pot of the pensions that should be there for people who really need them.

That represents, as I said, the ordinary mum-and-dad investor, as they have described themselves. The South Australian Centre for Economic Studies executive director Michael O'Neill, who has been asked for opinions on land tax policy and I think identified that he had been employed by the UDIA, the Urban Development Institute, to act as a consultant in relation to land tax policy, has flagged significant benefits for residential tenants who he said would ultimately have more disposable income to spend on services and in shops because rents would rise less rapidly under the government's relief plan. Let me quote him directly:

Aggregation is a principle that even industry supported,' Mr O'Neill was reported in The Advertiser.

Most people do. In terms of an efficient taxation system and cost, which the business sector argues all the time that it needs, land aggregation is the best thing and you must reduce the rate quickly.

There are a number of benefits, particularly for people renting properties. They often haven't had wage increases or are on fixed incomes.

There was a danger that an increase in land tax would obviously be passed on. There is no impetus now for landlords to increase rental charges.

Again, that is contrary to the many claims being made by the Property Council, and some of their fellow travellers who have supported them. Property developer Harry Perks has told InDaily:

To me, it's a lot better than I thought it would be, and more in line with other states, which is what we needed.

Finally, Mr Trevor Cooke from Commercial & General said:

Our view is that South Australia is by far the most competitive tax jurisdiction nationally.

So, right across the board, from ordinary mum-and-dad investors, like Lyn and Dom Deguglielmo from Paradise, who have invested hard-earned money in several investment properties, right through to property developers and investors, but also from learned academics, economists and consultants, who advise the property sector, such as the UDIA, they have all come to the same conclusion that the government's package announced early this week is a good package and one worthy of support.