Friday 15 December 2017
Labor and Greens combine for $200 million land tax hike
Victorians face higher land tax bills each and every year after Labor and their Greens allies combined to push through a new tax slug.
A land tax grab of $200 million in 2019-20 alone means that more Victorians will be hit with higher taxes under Daniel Andrews in another broken promise.
At present, properties are re-valued for land tax and council rating purposes every two years. This means that land tax assessments are stable for two years before the next revaluation occurs.
It also means that revaluations are more accurate, as two years’ worth of sales data can be analysed to assess market changes.
Also, as local councils have been undertaking the valuing, local expertise of council valuers give land owners more confidence in the accuracy of assessments.
However, in another tax grab from the Labor/Greens coalition, property valuations will now take place every single year and will be centralised in the office of the Valuer-General.
The Labor government has admitted that it expects to reap approximately $200 million in extra land tax in 2019-20 as a result of this latest tax grab.
Land owners also face less accurate valuations, as market movements using only 12 months of data will be more volatile than valuations using 2 years’ worth of data.
In a blow to local government, council valuers now face the sack while councils will lose the independence of being able to undertake their own valuations when needed.
Comments attributable to Shadow Treasurer Michael O’Brien:
“In hiking land tax each and every year, Daniel Andrews has broken yet another promise to Victorians. His promise of ‘no new taxes, no tax increases’ has become a lie.
“Victoria is now the highest taxing state in the nation. Under Daniel Andrews, Victoria has suffered twelve new or increased taxes.
“This latest tax slug means Victorians will pay more land tax – every single year – on a less accurate basis. Labor and their coalition partners, the Greens, have also treated local government with contempt.
“Labor and the Greens have never met a tax they didn’t like. A Labor-Greens coalition means only one thing for hard-working Victorians: higher taxes”.