Free information about NSW state land tax
Please Note The LANDTAXFORUM also has current data on Sydney regional Council’s and coastal Council . The Council’s have been most supportive with few exceptions “Gosford” who refuses to provide data.
Some 08/09 Data Comparing – State Land Tax with Council Land Rates.
Why are all past and current New South Wales Parliamentarians SILENT ,about State Treasury Agenda to undermine existing use of Freehold land ?????
New Land Tax designed to shutting down private funded freehold rental housing ,while government spends $millions on government housing.
Hi Paul.
Regarding proposed compulsory resumption of private property, by councils State to rezone then on-sell to developers, You responded October 09 you were requesting information from State Treasury following my representations.
Hi Tammie and Clover.
Again thanks for responding on behalf of Clover. I am not surprised Clover would not support, what press reports indicate draconian powers, for the benefit of the Property Council members, and State treasury.
Continue reading “Clover Moore & Tammie Nardone (same old Labor)”
Why is it that small business tenants and owners do not recognise that the State Land Tax agenda is to undermine freehold land existing use?
Why is it that residential tenants do not appreciate that State Land Tax targets rental housing?
We sent details to Councilor Moria Main — a Greens Councilor on Waverley Council (and others). Councilor Main expressed interest in “how and why” State Land Tax was and is designed to undermine existing use of Freehold land
Attached were two Tracker Graphs ,tracking state land tax in Waverley Council area from 2001 t0 2009. Trackers are available for all Council areas, and in many Council areas the impact of State Land Tax is much worse then it is in the Waverley.
{Also, sent others. see below} unilaterally
Waverley Council area data showing the growth in State Land Tax also, sent to Clover Moore.
Since 2001 to 2009 the following increases in State land tax have occurred in Waverley:
| Waverley’s Rental housing properties liable | in 2001 = | 4824 | State land tax = | $12,190,000.00 |
| Waverley’s Rental housing properties liable | in 2009 = | 7135 | State land tax = | $33,868,000.00 |
| Waverley’s Business properties liable | in 2001 = | 891 | State land tax = | $3,389,000.00 |
| Non Residential properties liable | in 2009 = | 1765 | State land tax = | $12,368,000.00 |
State Land Tax “Rate” increased in 2008 by 21%, then a further 20% two years later.
State Land Tax relentless increases are due to fixed base tax rate plus increased ‘tax rates’ and annual revaluations unlike council’s revaluations every three years. State Land Tax is a flat base tax that significantly increases when land value exceeds $2.3 million common with exclusively rental housing apartment blocks and small business that requires freehold industrial land. The State Government pegged Council land tax ‘Rate’ increases to “Cost Price Index”. But not State Land Tax
State land Tax agenda was a major consideration why Council land tax — Rates — were pegged. The Sate Government concerned of possible political damage having two un-pegged and competing land taxes, both, impacting all Freehold land existing use including free-standing Family Homes.” A double State tax whammy would awaken residents and Media to ask HOW and WHY State Land Tax is used as a stealth Planning weapon to undermine Freehold land existing use.?
The State Government used three year revaluation cycle to set each Council land values and sudden increases, and, Council’s not adjusting the “Rates”. This was the smokescreen used to Peg Council land tax ‘Rates to Cost Price Index “LEFT STATE LAND TAX UN-PEGGED and increased the tax rate and valued annually”.
State Land Tax agenda is designed to exploit the “mass valuation methodology” the ‘Valuation of Land Act 1916″ directs, a methodology specifically designed, and intended for Local Government to set land values each Council’s must use to set the respective land taxing “Rates”
Mass valuation methodology used for land taxing are only carried out in Local Government area, and deems all land vacant reflecting potential or “Highest and Best Use”. The methodology intended fairness by valuing all land from a common base on a common date ”Vacant Ready to Build”. Accordingly, existing use is disregarded. The methodology seek to spread the funding of Council’s equitably among Ratepayer. However, ” this is not the intent of State Land Tax that willfully exploits the mass valuation methodology to selectively undermine Freehold land existing use” taxing the value of potential use with a tax rate that Waverley Council’s “Rates” by 1150-% to undermine the districts existing rental housing and small business to promote Freehold subdivision to Strata lots. Taxing all potential use that may not occur for 40 years and beyond.
Treasury knows all about this and so does the State Valuer General.
Councils must use land valuations the Valuer General imposes, also, impose the same “Rate” to all land in the same class. Council land tax “Rates” are set and adjusted by Councilors Representing residents [unlike State Land Tax fixed base rate adjusted UP ] Since Council rate -Pegging was introduced Council’s could request the responsible Minister for increases “Rates”above the current “Cost Price Index”. That now has changed, now, Council must request increases from “Independent Panel Assessment Rates and Taxes” [ I.P.A.R.T] ]. It is a concern IPART at one time advocated Council Rates be un-pegged, that wont occur unless State land Tax is reformed, its withdrawn is unlikely as State Land tax is directed into Parliamentary Pensions and administered by Department of Finance.
Recently the NSW State Government introduced averaging land values over three [3] years, current and two previous years for State Land Tax. Done primarily to protect State Land Tax revenue from possible effect of the global downturn impacting land values and Sate Land Tax revenue, also avoided need to increase tax rate to retain revenue that may have alerted the Media to Sate Land Tax agenda. Averaging land value over three [3] years had/has the potential to increase State Land Tax revenues in many Council areas.
The O’Farrell Liberal New South Wales State Government has floated the proposal that all property in New South Wales pay a levy — another term for State Land Tax. And this proposal comes straight from the New South Wales State Treasury and Department of Finance.
The gag must be imposed on all current and past New South Wales Parliamentarians, explains a collective silence about State Land Tax
NSW Sate Parliamentarians current and past are aware of “State Land Tax Agenda” but are unilaterally silent. Why?
There is strong evidence State Land Tax is directed into Parliamentary Pensions. Barry O’Farrell Premier of the New South Wales refuses to respond to these questions and immediately placed State Land Tax Upper House member job, avoiding a Locale Member having to confront questions about State Land Tax administration. The O’Farrell Government gave State Land Tax administration to the Minister for Finance who also administers Parliamentary Superannuation and Pensions ???
Over a number of years submissions regarding impact on Rental Housing and Small Business to — Local Members — Premiers–Ministers — Government Committees –State Treasurer’s — Opposition Shadow Ministers –Government Departments –etc etc in person. All ignored most refusing to respond.
When the New South Wales Treasury responds it is always in a typical mis-leading obfuscation tactic, never, address the content of submissions or letters. Treasury even gave New South Wales Premier Rees mis-leading information to questions from Alan Jones on 2GB. Ask about how Sate Land Tax impacts Freehold used as as small shopping centre and a compared one that was strata lots. To Mr Rees credit he returned next day to 2GB and made an apology for giving misleading information.
Barry O’Farrell is the latest he was asked to respond to comments about State land Tax during July 2011,. When asked in person and handed a copy of the letter about 8 months later, said he had never seen it and promised a response that was about 18 months ago and NO REPLY.
A Real example impact of Sate Land Tax on freehold land used as exclusively rental housing a Bronte
NSW State Land Tax 2010 is imposed on a Block of four [4] used as exclusively rental housing that requires a freehold site.
*The lands taxable value is $940,670.00
State Land Tax alone is $15150.0 or $73.0 per week per Apartment imposed because the use is exclusively rental housing taxing 17% of gross rental.
Existing use is forced to subdivide into four [4] strata Apartments, removing existing use as exclusively rental housing [ numerous examples available]
State Land tax agenda immediately generates and compounded additional State taxes (Stamp Duty and so on)
The block is sold to a dealer/developer [ Haysons active in this field] then subdivided into [4] strata apartments. If sold to separate strata new owner, who, generally occupy THERE IS NO STATE LAND TAX.
However, if the strata Apartments are rented THERE IS NO STATE LAND TAX, because, each Apartment is tax on its portion of total land value that would be about $235,168.00, THERE IS NO STATE LAND TAX
as the portion value is below tax free threshold ,also, strata apartments sale turn over is more frequent then the Freehold and state property taxes are compounded.
Yet!, if, exclusively rental housing ,then, UNPEGGED State land Tax is $15150.00 annually and increasing.
(If a block of 12 or 20 exclusively rental apartments the immediate state property taxes generated and compounded are much greater. Numerous examples of this are available)
And Governments tells us we have a rental crisis that can only be addressed if Sydney residents live in strata housing. ????
This agenda can been seen from Redfern to Mascot undermining existing use of Freehold land replaced with towers of strata apartments that have real potential to make these areas a Social Horrodor and Traffic nightmare” and called Town Planning by State Treasury, the Development lobby and City Council and Locale Parliamentary representatives.
CJ (Mike) Danzey
Registered Real Estate Valuer
Begin forwarded message:
From: Mike Danzey
Date: 22 April 2010 6:05:17 PM
To: Mora Main, Paul Pearce, NSW premier
Cc: Clover Moore, Wentworth Courier, Daily Telegraph, The Sydney Morning Herald, Alan Jones, Ross Greenwood
Subject: Waverley State Land Tax tracker 2001 to 2009
Hi Clover, and Tammie.
Thanks for a response.
I would appreciate you response to the following additional comments. On Clover’s relayed comments, [via Tammie email attached]