'Disatrous' land tax soars 1200 per cent in 12 month

I read a few posts regarding land tax in VIC will increase 1200 per cent in next 12 months.

Is it true?

Investor crisis as "disastrous" land tax soars 1200 per cent in 12 months

 

Do you have a link that's not behind a fire wall .

Good for me .

Land tax a killer in Victoria !!!

Solution .

Buy in Brisbane / tassie or Adelaide ...

Cliff

 

Feds most hate it to as it makes there take much lower as well.

 

Investor crisis as "disastrous" land tax soars 1200 per cent in 12 months

Looks like emotional drivel to me...

 

A bit sensationalist...i just had my rates adjusted to 1.2m in land and still paying only 3k for similar amount in Qld I pay 6.5k.....in NSW you would pay over 10k.

 

Personally, I don't think they will put this into practise. 1200 per cent increase??

According to the source, after VIC put this into action in next 12 months, other states will follow...

Seriously, 1200 per cent?? No brainer!

 

no chance...they are onto a good thing and people are moving there in droves.

To put in perspective Tasmania has one of the worst threshold for Landtax thresholds.

It cuts in anything above 25k in land value..for 25-350k it is at 0.55%...anything over 350k is going to 1.5%.....add that up on CF?

So if you buy an inner city house for 375k...225k is going to be land...that will cost you about $1100 in land tax...

 

So the land tax rate isn't actually increasing but this person's property value was reassessed (as per every 2 years) and it had a significant increase in value...?

What a terrible problem to have.

I do appreciate that such a change can seriously cramp one's cash flow.... but it's not quite what the title seemed to infer.

 

it's Commercial - seriously? i know ppl who have multiple 2-3 mil dollar property (no where near that). and i have contacts who are in the SRO who haven't heard nothing.

 

There is no threshold in the ACT - it is payable even on small apartments. $2200/year for our IP (worth ~550k)

 

Land tax increases can indeed have a dramatic effect but they couldve found a more sympathetic victim

2 shops and 7 offices, all commercial leases, if he doesn't have them paying for his land tax then he's a bit of a fool.

Also, they say he bought it 40 years ago as a retirement nest egg, well he's now in his retirement so even if he had to sell part of It or all of it well that's what a nest egg is meant for right?

Imagine owning 9 commercial properties in Brighton worth many millions,bought in the 70s so highly likely to be paid off,where unlike resi property you have the ability to make your tenants pay your land tax and then crying about land tax

 

Yep....cry me a river......if he is paying 63k.....he probably has $20m in commercial property....

 

If they're under retail leases landlords can't have the tenant pay land taxes.

 

79 year old with properties that could be 20-30mil alone for 2 shops and 7 offices, all commercial leases, sometimes the readers need to read btw the lines too

come on - that's like owning 200-300sqm right in prime CBD in Collins st or chinatown

if it was one guy who had 3 residential houses paying that amount of land tax (that yeah maybe you would fee sorry abt it)

 

But the office lease tenants should pay the land tax? I don't know, which is why I am asking. Not sure if it is a legit problem or a firstworldproblem. Although, I suspect the latter.

 

"The Victorian state government is planning to increase the tax from every two years to every year."​

This is incorrect. I'm disappointed the AFR would publish something so obviously inaccurate.

 

So his land value has gone from $1.3m to $4.87m.

Before going to a valuer to dispute the valuation, run to the media!!!!! Oh, that's what he did.

What is the backstory? Is it a site on the foreshore which has been rezoned from commercial to multi-storey residential? Was he instrumental in getting a rezoning? At the bayside end, there's only housing but at the other end of the street (Nepean Hwy) there's multi-storey commercial/residential development. Gut feel it isn't at the bayside end of the street.

My heart bleeds that at his age he can't fund the development.

Linky to OSR table

 

Well as much as I love Victoria this is what happens when the socialist nutters control the economy. Other states including my own not much better. Wealth taxes for business premises makes about as much sense as Sco-Mo’s new bank levy - a populist cop-out. Yes they are commercial premises, so they will get re-charged to the tenants. But that’s actually the problem.

Following this through its just another OTT overhead that employing businesses have to deal with. You think it’s not going to affect the future pricing of the solicitor / engineer / bakery tenant’s goods and services ? Of course it does! That’s why visitors from just about every other nation think we’re already one of the dearest countries to visit or start a business in. Everything (especially re property development, but even basic goods and services) is dearer here than it needs to be because of sneaky hidden (to the public) inefficient taxes and inputs. We are over-governed and inefficiently taxed (note I didn’t say over-taxed). Payroll tax an even bigger shocker. Bring on proper tax reform I say and start stripping the bad’uns out.

My own view is to vastly reduce/remove inefficient state taxes and reset GST instead, OR exempt all commercial premises from these land taxes and charge households more instead. As a nation to have any sort of future prosperity we need to chop waves of inputed costs for business enterprises, who can then improve their competitiveness, employ more people and grow the economy. Otherwise all our jobs continue getting off-shored and our only new jobs are public servants, baristas and reality TV stars unfortunately.

Too many people piling in with the view that he’s a rich old b**** he can afford to pay. Most of the country seems to have this bogan mentality unfortunately. But we need to start focusing on productivity people, so all our kids can have jobs and a better future. As a nation we need to get a lot smarter, and see the bigger picture. Sorry for the contrary view.

 

The bank levy is a ruse. It's there because Scott Morrison knows there's a significant risk of a housing market correction (extending at least through oversupplied apartments) and if he prods the banks into raising rates it gives him somewhere to point fingers when the bubble eventually bursts.

Oh? Interest rates went up? Those greedy banks did it! Aren't banks the worst? And so on. He's trying to force the banks to raise rates. In Ireland there was an awful lot of blame directed at the government. I really think ScoMo's trying to cover his butt here. Best case scenario the bubble doesn't burst and he taxes the banks. There's no way he loses.

Not sure about land tax, this article seems like a bit of a beat up.

 

Depends on a few factors, if they're selling things, services, is it in a shopping strip etc.