Category: Correspondence

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

 

Hello Andrew.

Thanks for reminding me of the concern Mike Baird may not remain Treasury because he is in Legislative Assembly.

That Mike Baird is now State Treasurer is no surprise, Barry O’Farrell always insisted he would be, although it was not qualified that important areas of State taxation would be removed from him and transferred to a member of the Legislative Council.

An urgent need exists to reform State land tax; especially its impact on privately-funded rental housing and small business. Mike Baird has showed interest in reform.

A Treasurer that is directly answerable to an electorate can cause the member difficulties. However, only time will tell why land tax etc. was removed from Mike Baird.

A Treasurer in the Legislative Council is an old manoeuvre which successesive Labor goverments form the Carr Government (Michael Egan) to the Keneally government (Roosendaal) made an art form. It was a tactic to quarantine Labor’s Taxation agendas. Under those governments Labor members became mere post boxes for their constituency’s representations, forwarding their correspondence to Ministers to be answered by a faceless Treasury bureaucrat, specialising in irrelevant obfuscation.

For example, I asked why State land tax was imposed on Waverley’s rental housing 1151% higher then Waverley’s council residential land tax ‘Rate‘? No reply was ever received.

There have been Labor Treasurers in the Legislative Assembly — in recent times Maurice Iemma and Andrew Refshauge had a short term — however Treasury was always soon returned to the Legislative Council.

Michael Egan’s resignation from the parliament followed the removal of the tax-free threshold from state land tax in 2005, a decision to tax all privately-funded rental housing and small business throughout NSW and install State land tax in direct competition with Local Council land tax (which we all call Council Rates).

This move by Labor generated protests from far and wide, forcing Bob Carr into damage control by restoring the tax-free threshold of State land tax in 2006, and significantly increased the tax rate to impact freehold land, especially, if used as rental housing.

The Carr government presided over a mass removal of exclusively rental housing on freehold land which exacerbated a rental crises, while at the same time feigning concern. Bob Carr also removed public access to local council valuation rolls, debasing the creditability of the mass valuation process that sets land values for both State and Council land taxing.

The Carr government set many political land mines that exploded under Labor at the recent State election. Labor became arrogant, and died arrogant.

Barry O’Farrell may be quarantining Land tax by moving responsibility to an Upper House member. It may be he will address the impact of State land tax on freehold land used exclusively for rental housing, and small business. Time will tell.

Regardless, Mike Baird is today “The Treasurer of NSW”. He has show interest in reforming State land tax. Let us hope he remains there.

Regards,

Mike Danzey

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 ?????

Continue reading “Richard Penn: North Sydney Data 08-09” →

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.

Continue reading “Paul Pearce: Coogee land tax” →