Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2021-02-17 Daily Xml

Contents

Land Tax

The Hon. F. PANGALLO (15:03): I seek leave to make a brief explanation before asking a question of the Treasurer about land tax.

Leave granted.

The Hon. F. PANGALLO: Last year, RevenueSA advised that land tax bills for most companies, trusts and super funds would be issued by 20 December. My question to the Treasurer is: is there a delay in issuing these bills and, if so, for what reason? When does he expect them to be sent out and does he believe it is acceptable to leave these clients in the dark about what they are up for?

The Hon. R.I. LUCAS (Treasurer) (15:04): The simple answer to the honourable member's question is yes, there has been a delay. I am advised that due to the extraordinarily innovative, complex and complicated legal structures that some taxpayers have, the process of clarifying the land tax arrangements for some of those—and I think we broadly reflected that in the debate whenever it was, 18 months ago. In some cases, up to 400 different company structures might be involved in one potentially grouped ownership arrangement. Similarly, with the trust arrangements there are some complicated processes.

There have been delays in terms of getting all of the land tax bills out. RevenueSA has applied additional resources into this particular area. Certainly, they are not all being delayed. The honourable member can make it clear to his constituents that, as each one is clear, the appropriate bill is sent to the appropriate land tax payer. The more complicated ones have been delayed obviously in terms of the processing of the precise nature of the tax obligation that they have. Those that are uncomplicated and clear are being processed within the expected time frames. Those that are more complicated and more complex are taking longer in terms of processing.

RevenueSA advised me last week or the week before that, as I said, additional resourcing is being provided in the nature of when some bills might be expected. The best advice they were able to give me was that they are processing as many as they can as quickly as they can. But yes, to answer the member's questions, there have been some delays in terms of issuing a tax bill.

I must say, on a regular basis I receive advice in terms of my political career from all sorts of places. One of those for many of us is the person who cuts our hair and my barber of longstanding did text me a week or 10 days ago saying many of his clients were complaining that they hadn't received their land tax bills yet. I sent a text back to him saying, 'It's the first time in 40 years I have ever heard of anyone complaining that they hadn't received their tax bills from me as the Treasurer.' I was delighted to hear that news. I said that tongue-in-cheek and he took it in the spirit with which it was offered.

RevenueSA is working as hard as it can in terms of processing those bills. It is a complex new system that has been introduced. In the first year, once the processes are established for individual taxpayers and they have adjusted their tax arrangements accordingly, as many of them are doing, it will be much less complicated in future years in terms of processing tax bills.