Month: August 2011

When rural production land which is exempt from State Land Tax (SLT) changes use, is SLT imposed?

And if not, why?

We wrote the Chief Commissioner of State Revenue to ask the question. Continue reading “Letter to Chief Commissioner of State Revenue” →

 

26th July 2011

Barry O’Farrell

Premier of NSW

Level 40

Governor Macquarie Towers

1 Farrar Place

SYDNEY NSW 2000

 

Dear Premier,

 

Regarding State Land Tax. [SLT]

 

First, congratulations on the Coalitions resounding election success in March and wish you and your government good government for NSW.

 

We have waited the customary period of 100 days before raising some issues and concerns with you about the impact and administration of SLT and would appreciate your response.

 

Michael Baird the member for Manly appointment as State Treasurer was a welcomed change to Labor’s tactic to “quarantine the Treasurer in the Legislative Council, however, after the March election SLT and Superannuation were transferred from the Treasurer to the Hon Greg Pearce MLC Minister for Finance, raising concern your government proposes to continue in part, the previous government tactic. This is disappointing, as Michael Baird indicated a desire to examine the difficulties SLT inflicts on private freehold land, used exclusively as rental housing and small business. Your comment appreciated.

 

Also, to combine SLT and Superannuation in the move to Minister for Finance suggests they are connected or codependent on each other. Is this correct? if so, to what extent are they codependent?

 

The Labor Governments [Bob Carr’s] SLT legacy is. “ The undermining of private Freehold land used exclusively as rental apartment blocks and small business, a deliberate SLT agenda that exacerbated the rental housing crises”.[it continues] Done! While government inversely expressed concern about rental crises, promoting social housing programs and their management groups, also, serves Labors concerns about urban gentrification. In NSW original SEPP 10 council areas, 1000’s of examples exist where Freehold land previously used as private exclusively rental housing, has succumbed to strata subdivision, SLT agenda being a prime factor, consequently, removing this freehold land use as private exclusively rental housing stock.

 

SEPP 10 a government-planning policy intending retention of exclusively rental housing apartment blocks on freehold land failed, primarily, because government SLT policy intending to undermine exclusively rental housing apartment blocks. Despite duplicity of government policy, Labor ensured SLT agenda prevailed, primarily, because it generates and proliferates State property taxes and GST; undermining freehold land, promoting freeholds conversion strata lots. Your comment appreciated.

 

Government involvement in social housing is an essential social safety net, however, when government uses SLT to subvert freehold land use as private rental housing, suggests a strong influence of ideology to socialise rental housing and maybe a reason why social housing groups and are silent about SLT impact on private rental housing.

The Greiner government legislated Company title be treated as strata, allowing each apartment eligible for SLT threshold exemption, acknowledging, SLT impact on freehold company title apartment blocks, NOT exclusively rental apartment blocks.

 

Please, when time permits go to our web www.landtaxforum.com.au . There, SLT “Rates” and Local Council’s land tax “Rates” are compared. Woollahra comparative is posted. From 6284 liable rental properties SLT was $56.2 million. Compared with Woollahra Residential land tax “Rate” from 24128 properties, revenue was $23.03million. Your comment appreciated.

 

Yours Faithfully.

Mike Danzey.

Reg. Real Estate Valuer.

Convener of the Land tax Forum

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Reminder Notes

*Regarding the above letter of 26th July 2011 , Premier Barry O’Farrell has been  sent two follow-up reminder letters ,the Premier has not   responded or even acknowledged.

*On 27th January 2012   A reply letter arrived completely evading a  response to questions and information

requested of Premier O’Farrell so obviously constructed by State Treasury filled with typical Treasury obfuscation the previous Labor governments specialised in.It is disappointing

the O’Farrell Government is adopting same misleading tactics .

State Treasury involvement in Land Tax agenda ,has plenty to conceal about State land tax policy and agenda a prime cause  factor in the rental crises .

We will persist  seekingPremier  Barry O’Farrell to respond to explain Liberal policy by responding to information requested.

.

*On 11th April 12   At North Sydney Rotary meeting Barry O’Farrell was given a copy of 26th July 11 asking

when it was sent . When told July 2011 “This is the bane of my life”

I believe he has never seen letter sent off to a Treasury bureaucrats to deal with , specialising in spin and obfuscation.

Now!, the Premier has  personelly accepted

the letter we can expect a full response,also ,what Liberal policy is on SLT,

*15th May 2012 No reply as yet.

*1st July 2012 No reply as yet.

*20th January 2013  Premier O’Farrell has not responded to the letter of july 2011

* 17th April 2013     Premier O’Farrell has not responded despite copy of letter personelly handed to Barry O;Farrell