Land tax ruddy hell

[panther]

Letters to the editor advertiser 30th Jan.
There are 2 letters back to back which I read today

From Donna Peters first paragraph only

I was concerned to hear that PM Rudd will attempt to project 50000 construction jobs by creating a 4 billion partnership with major banks to finance office buildings, shopping centres and other commercial projects .......

Next letter from Brian Lucas

I wish to add my voice against the Governments land tax regime.
Over the past 4 years tax on our workshop properties at Wingfield has increased from $1577 in 2005, to $6212 in 2006, to $10820 in 2007, and to an outrageous charge of $21767 in 2008-2009
This represents legal extortion, or should I say daylight robbery. What a way to punish setting up of a business in South Australia.
I spent 40 years building up my business and I am sure that anybody in the future would have second thoughts about investing in South Australia.
This is government gone mad with power to the detriment of the people



This is stunning this guy has been taxed from $1577 to $21767 in 3-4 year period
The goverment seems to love bailing out large corporations [like car manufacturers] who employ large masses of people , but seemingly forget about Aussie battlers like Brian Lucas

[bayman]

spot on panther

[Dutchy]

isnt Land Tax from the State Government?

[The Ash Man]

isnt Land Tax from the State Government?

Thats what I thought

[The Ash Man]

http://www.landtax.com.au/

Land Tax is a State Tax imposed by each State and Territory of Australia

[mick]

Land tax certainly is imposed by the state government. As much as I detest Mike Rann and his government, the massive increase in the last year is a result of closing a legal loophole that had existed in SA. Apparently people who owned multiple investment properties had a way of minimising land tax by using relatives or children as part owners. I'm not sure exactly how it worked. Anyway this has been closed. I own one investment property and my land tax has not gone up all that much. I suppose tenants will ultimately end up paying these bills. The other thing is land tax is based upon value as the value of your asset soars then so does the tax. believe me I would love to be paying $21,000 land tax because it would mean that I am doing very well.

[Psyber]

Land tax certainly is imposed by the state government. As much as I detest Mike Rann and his government, the massive increase in the last year is a result of closing a legal loophole that had existed in SA. Apparently people who owned multiple investment properties had a way of minimising land tax by using relatives or children as part owners. I'm not sure exactly how it worked. Anyway this has been closed. I own one investment property and my land tax has not gone up all that much. I suppose tenants will ultimately end up paying these bills. The other thing is land tax is based upon value as the value of your asset soars then so does the tax. believe me I would love to be paying $21,000 land tax because it would mean that I am doing very well.

Possibly, but maybe only if you can actually sell the property because there is somebody who will buy it, and you are set up so the CGT doesn't kill you.
One of the problems of small business is the problem of getting out and extracting your investment when your cash flow is down in hard times and nobody wants to, or can afford to, buy your premises..
Then your are notionally "rich" but in fact struggling to pay bills like these.

[mick]

Land tax certainly is imposed by the state government. As much as I detest Mike Rann and his government, the massive increase in the last year is a result of closing a legal loophole that had existed in SA. Apparently people who owned multiple investment properties had a way of minimising land tax by using relatives or children as part owners. I'm not sure exactly how it worked. Anyway this has been closed. I own one investment property and my land tax has not gone up all that much. I suppose tenants will ultimately end up paying these bills. The other thing is land tax is based upon value as the value of your asset soars then so does the tax. believe me I would love to be paying $21,000 land tax because it would mean that I am doing very well.

Possibly, but maybe only if you can actually sell the property because there is somebody who will buy it, and you are set up so the CGT doesn't kill you.
One of the problems of small business is the problem of getting out and extracting your investment when your cash flow is down in hard times and nobody wants to, or can afford to, buy your premises..
Then your are notionally "rich" but in fact struggling to pay bills like these.

Agreed I was thinking more of my own personal position.

[Dutchy]

So cause Land Tax is State government tax then the 2 issues sholdnt be compared

mute arguement Panther

Your right Mick a 2nd party could own 1/100th of a property and it would exempt them from Land tax, that has now been closed