Legislative Council
Fifty-Fourth Parliament, First Session (54-1)
54
1
Parliament of South Australia
Legislative Council
published
Answers to Questions
Answers to Questions
Land Tax
Land Tax
The Hon. C. BONAROS
Legislative Council
Land Tax
In reply to the Hon. C. BONAROS (10 September 2019).
The Hon. R.I. LUCAS
Legislative Council
Land Tax
The Hon. R.I. LUCAS (Treasurer): I have been advised the following:
In general, the amount of land tax payable across jurisdictions is based on a marginal tax rate structure, with increasing rates of tax applied to the value of land above set thresholds.
Under the proposed reforms, the top land tax rate of 2.4 per cent in South Australia will apply to the taxable site value of landholdings above a threshold of $1.35 million in 2020-21 and 2021-22, increasing to $1.6 million in 2022-23. Beyond 2022-23, the final threshold will depend on the relevant threshold indexation factor as determined by the Valuer-General, consistent with the requirements under the Land Tax Act 1936.
Table 1 below estimates land tax payable across jurisdictions for a range of site values where the land is not liable for the higher trust surcharge land tax rates. For South Australia, the comparison assumes the Land Tax (Miscellaneous) Amendment Bill 2019 as introduced into the Legislative Council is approved by parliament.
Accordingly, this is inclusive of the government's amendments, which introduced a new threshold with a marginal rate of 2 per cent and increased the site value for which the maximum rate of 2.4 per cent will apply.
| Land Tax Payable—Non-Trust(1) |
|
NSW |
VIC |
QLD |
WA |
SA |
SA |
TAS |
ACT (3) |
| Site Value $ |
|
|
Individuals |
Companies/Trusts |
excl. MRIT (2) |
(20-21) |
(22-23) |
|
Res |
| 50,000 |
- |
- |
- |
- |
- |
- |
- |
188 |
1,513 |
| 100,000 |
- |
- |
- |
- |
- |
- |
- |
463 |
1,763 |
| 200,000 |
- |
- |
- |
- |
- |
- |
- |
1,013 |
2,313 |
| 500,000 |
- |
775 |
- |
4,000 |
500 |
250 |
115 |
4,088 |
5,193 |
| 700,000 |
228 |
1,475 |
1,500 |
7,400 |
1,000 |
1,250 |
1,115 |
7,088 |
7,353 |
| 1,000,000 |
5,028 |
2,975 |
4,500 |
12,500 |
1,750 |
5,568 |
4,904 |
11,588 |
10,593 |
| 1,350,000 |
10,628 |
5,775 |
10,275 |
18,450 |
4,900 |
12,225 |
11,326 |
16,838 |
14,373 |
| 1,600,000 |
14,628 |
7,775 |
14,400 |
22,700 |
7,150 |
18,225 |
16,326 |
20,588 |
17,073 |
1.	The above table compares the land tax payable under the estimated 2020-21 and 2022-23 rate structure (including indexation of relevant thresholds) in SA for land not liable for the higher trust surcharge land tax rates, compared to the 2019-20 land tax scales in other jurisdictions.
2.	Excludes the Metropolitan Region Improvement Tax (MRIT), which is levied on the unimproved value of land situated in the metropolitan region at the rate of 0.14c per $1 for land valued over $300,000.
3.	Land tax is not payable on commercial properties in the ACT.
Under the proposed reforms, the estimated amount of land tax payable in South Australia will be lower compared to similar land holdings valued up to around $775,000 in Victoria. In addition, the estimated amount of land tax payable on land holdings valued up to $1.3 million in South Australia will be lower than the amount payable in Tasmania, the Australian Capital Territory and for land held in companies in Queensland.
The amount of land tax payable in South Australia will be higher than that on land holdings in New South Wales and land holdings above around $775,000 in Victoria.
Table 2 below estimates land tax payable across jurisdictions where the land is held in trust and subject to a higher rate of land tax (where applicable).
| Land Tax Payable – Trust (1) |
|
NSW |
VIC |
QLD |
WA (4) |
SA |
SA |
TAS (4) |
ACT (3)(4) |
Site Value $ |
|
|
Individuals |
Companies/Trusts |
excl. MRIT (2) |
(20-21) |
(22-23) |
|
Res |
| 50,000 |
800 |
176 |
n/a |
- |
- |
250 |
250 |
188 |
1,513 |
| 100,000 |
1,600 |
363 |
n/a |
- |
- |
500 |
500 |
463 |
1,763 |
| 200,000 |
3,200 |
738 |
n/a |
- |
- |
1,000 |
1,000 |
1,013 |
2,313 |
| 500,000 |
8,000 |
2,364 |
n/a |
4,000 |
500 |
2,750 |
2,615 |
4,088 |
5,193 |
| 700,000 |
11,200 |
3,813 |
n/a |
7,400 |
1,000 |
4,750 |
4,615 |
7,088 |
7,353 |
| 1,000,000 |
16,000 |
6,438 |
n/a |
12,500 |
1,750 |
10,568 |
9,904 |
11,588 |
10,593 |
| 1,350,000 |
21,600 |
10,551 |
n/a |
18,450 |
4,900 |
18,723 |
17,891 |
16,838 |
14,373 |
| 1,600,000 |
25,600 |
13,488 |
n/a |
22,700 |
7,150 |
24,723 |
23,891 |
20,588 |
17,073 |
1.	The above table compares the land tax payable under the estimated 2020-21 and 2022-23 rate structure (including indexation of relevant thresholds) in SA for land liable for the higher trust surcharge land tax rates, compared to the 2019-20 land tax scales in other jurisdictions.
2.	Excludes the Metropolitan Region Improvement Tax (MRIT), which is levied on the unimproved value of land situated in the metropolitan region at the rate of 0.14c per $1 for land valued over $300,000.
3.	Land tax is not payable on commercial properties in the ACT.
4.	Land tax payable unchanged for land held in trust.
For land held in trust and liable for higher rates of land tax, the estimated amount of land tax payable on land holdings valued up to $1.3 million in South Australia under the proposed reforms is lower than the amount payable in New South Wales. The estimated amount of land tax payable on land holdings valued up to $1.3 million in South Australia is higher than the amount payable on similar land holdings in Victoria. The comparison with other jurisdictions varies depending on the value of the land holding as indicated in table 2.
The comparisons in the tables do not account for differences in the value of land across jurisdictions. Land of similar size and location in NSW and Victoria would generally be higher valued compared to South Australia.