HANSARD
SITTING CALENDAR
SEARCH
LIVE BROADCAST
Hansard Dynamic Member Index
Legislative Council - Fifty-Fourth Parliament, First Session (54-1)
2019-07-31 Daily Xml
Contents
Pdf Xml

Land Tax

The Hon. F. PANGALLO (15:12): Yes. Can the Treasurer also take on notice: can he provide this chamber with a figure of how many South Australians actually have seven properties at that value where they do not pay land tax? Can you provide the numbers of people that actually have those holdings?

The Hon. R.I. LUCAS (Treasurer) (15:13): I would love to be able to say that I have got those numbers in my back pocket but, no, I do not have those particular numbers, and I don't have access to those particular numbers. What I can say is that there are a very significant number of mum-and-dad investors, to use the phrase that is being used by many, who currently own multiple properties who are paying land tax at the aggregated rate.

I think the point that is missed by many of the critics of the government's reform proposal is that in some way aggregation is being introduced. Aggregation has always existed in South Australia. The rules are actually being proposed to be changed to be consistent with New South Wales, Victoria or Queensland, but aggregation has always existed. What I have identified is that there are some currently legally available devices, such as trusts and companies, which allow the aggregation provisions to, in essence, not have the impact that was originally intended by the legislation.

There are many, many people who own multiple properties who are aggregated and who are paying tax at the aggregated rate. Why? Because they haven't set themselves up into three, four, five, six or seven separate companies and trusts. I run into these people at lunches and dinners on any number of occasions who say, 'I own four properties. I currently pay land tax at the aggregated rate. I think 3.7 per cent is outrageous because when I first bought the properties they were under the $1 million threshold for the top rate of land tax, but over 10 or 20 years, if I have owned properties in the north-eastern suburbs, the site values have gone up and I now own property over $1 million. I am paying land tax at 3.7 per cent and it is outrageous.' I say, 'Well, I agree with you. That's why we are trying to reduce the 3.7 per cent to 2.9 per cent,' but they are currently paying land tax at the aggregated rate.

I think everyone assumes that everybody who owns multiple properties is using trusts and companies. The answer is that that is not correct. We are trying to get some numbers to better inform this debate as to how many South Australians, individuals and others, currently own multiple properties and are currently paying land tax at the aggregated rate and will be assisted by a reduction in the top rate from 3.7 per cent to 2.9 per cent.

To repeat the response to the member's question: no, I don't know the number of individuals who own seven properties at $400,000 site value and are currently not paying a single dollar in land tax, but I might say that when I have raised the issue there is not one opponent of the government's reform package who was able to dispute the accuracy of the claim.

PARLIAMENTARY BUSINESS
MEMBERS
GET INVOLVED
ABOUT PARLIAMENT
VISIT
LEGISLATIVE COUNCIL
HOUSE OF ASSEMBLY
CONTACT