The Land Tax Forum provides official data about NSW State Land Tax (SLT) seeking to explain how and why this little-understood insidious tax, is designed to impact the existing use of freehold land if privately owned. Proposals of a “catchall SLT” are disguised as Levy — taxing land values imposed by the current land valuation methods. A catchall SLT has real potential to undermine free-standing family homes on freehold land. Also SLT can be imposed in direct competition with council rates — local government’s own land tax. This has been proposed because certain established councils are to be abolished as unviable. To say the least: contradictory.
A catchall SLT reduces existing liability on business land, spreading liability across all land use. Proponents of catchall SLT never raise the fact that SLT is not tax deductible against Federal tax liability on the family home, just like all other taxes and charges aren’t. However, for land used for business, all costs are deductible against Federal tax liability, while catchall SLT reduces liability.
Of course, you know why the Property Council and NSW Treasury supports a catchall SLT. They know a catchall will impact existing use of suburban lands.
In NSW, a catchall SLT will further fund State Superannuation and cannot be evaded — it becomes an estate in all private liable land, which if not paid, the State can and will lodge caveats on title. Impose usury interest rates on arrears, before taking possession and selling the land, warning such action can endanger mortgage agreements etc.
Read the Office of State Revenue’s current letter of demand soon on landtaxforum.com.au