Hi
I have been hearing a lot of complaints about the land tax issue in Vic on the tv and radio yesterday. Can anyone tell me what the fuss is about. I understand there are potential changes about to be implemented but I heard they were to improve the situation for investors. But from discussion on the radio it appears this is certainly not the case.
Can anyone advise me as to what is happening and what everyone is complaining about?Jules[blush2]
JULES1
Email MeThey are complaining about more tax!
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Hi Jules,
I don’t know that I can shed too much light on the subject, even as a fellow Victorian. However what little I do know is that the SRO is looking at changes (increases) affecting land tax across the board in Victoria with the biggest impact being on commercial properties.
Businesses will be hit hardest. In the news just this evening there was one (of probably many more to follow) stories of the well known Metung Hotel closing its doors as the result of increased land taxes; the owner claiming that increase in rates from $4000 to $43000, not to mention further increases expected to reach as high as $80000 over the next couple of years has forced his hand in bringing his business to a sharp end.
There has not been much information provided as yet, however I am sure WE (Victorians) will be informed in due course, and I daresay it will not be pleasant news.[bawl]
Jo
The thing about Vic land tax is that with the boom in property prices over the last few years,land taxes have soared.I think that there is a sliding scale for land tax,and land owners and commercial tenants are constantly being pushed in to the next tax bracket.The inner areas of Melbourne seem to have been particularly hard hit,or at least they are the most vocal.A large harware store/timber yard in Hawthorn that has been trading on a particular site since the day dot will close early next year because of the land tax.A pub a little further up the road is also very vocal about the huge increase in their tax.A dry cleaner in Camberwell is justifiably vocal about their 929% increase in land tax.So there you have it!
Tools
hi Jules,
I heard similar discussions on radio. A gentlemen who owned a pub in Gippsland said three of four years ago his land tax was $4000 and he thought that was hefty….this year it is $44000!!! He estimates it will be $65000 in two years and he’ll have to sell up. I think I’d just move into the pub myself….
Sorry I don’t know what the specific changes are though. I did hear alot of discussion on property values being grouped, so may be that has changed? Instead of being assesed on individual properties?
Good luck,
Sue [biggrin]“Be careful not to step on the flowers when you’re reaching for the stars”
It’s the same pub Sue!!![biggrin] The Metung Hotel is in Gippsland, Victoria.[whistle]
Nevertheless, sad ending to a great old historic pub!!! [glum2]
I can’t see ridiculous land tax and stamp duty staying around for too much longer. The Liberal Federal Government takes control of the Senate in March and there will be nothing to prevent the passing of bills by the Liberal Government.
I believe Howard is out to get the Labor State Governments in this area. I hope he cancels Land Tax and Sales Tax etc. but I am certain a replacement tax will appear. Taking State powers would be for some interesting political debate.
I lead a boring life!!!
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Thankyou all for your thoughts about this issue. I was stumped on it and its really interesting to hear what the situation is and to hear everyones views. Robert I have the same feeling about this as you, since reading all the responses above. Surely the Fed Govt can do something about this. Looks like we will have to vote Libs in at the next state election as well.
Bracks must be out of his mind thinking that the public will put up with this.Cheers everyone and lets hope something occurs to put a sharp end to this one.
[confused2]Jules[blush2].
JULES1
Email MeThey introduce ridiculous taxes at the start of their term. Unfortunately, the voters forget or get used to it by the time the election comes around.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
The hotel I referred to above is the Whitehorse In in Hawthorn.The owner wrote in to yesterday’s Herald Sun in Melbourne: “Six years ago I paid $1400,and last year my land tax was $33,000”.He also said “Valuer General has directed councils to rate properties not on their current use,but the highest,besat possible use,based on options that developers may (note MAY) submit to councils.”
Hardly a fair situation.Tools
What is the best view of Victoria?
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdJules, this is happening across the board. SA and NSW i can say for sure are having the same issue with hefty increases. In both states my land tax bill pushes my properties heavily into the negative cashflow stages.
NSW actually backdated my land tax 2 years and gave me 14 days to pay due to some glitch.
Dam governments.
Byronent
Adelaide SAThat’s a good point Byronet, something that now needs to be looked at more thoroughly when purchasing for positive cashflow.
Obviously its going to make a big impact.
And to backdate 2 years, thats really nasty!Sue
“Be careful not to step on the flowers when you’re reaching for the stars”
You are telling me, and to fight or argue only incurs you a 12.8% interest penalty.
How the government is allowed to charge double the bank rates is beyond me. Dam Labour!!
Byronent
Adelaide SA
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