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]
“The NSW Labor State Governments proposal to introduce legislation enabling compulsorily resumption of private property to on sell to developers ,is planning madness
Quote.
“For private companies to construct and sell housing for a profit.”
“To partner council to rezone it “
Clover, waiting for such legislation to be introduced, can give the impression you support the Premier, Kristina Keneally agenda in principle, only awaiting the detail.
Outrageous attack
Yet, the intent appears an outrageous attack upon the rights of property owners, by, Premier Keneally, using old rhetoric, ” that massive increases in density of strata housing
is necessary, to address housing affordability and rental accommodation crises.”
Breath taking hypocrisy
The Premier’s hypocrisy is breath taking, being aware State Treasury land tax agenda is designed to undermines
Privately funded housing, especially, exclusively rental housing on freehold land. [Blocks of residential flats]
Also ,aware Treasury land tax agenda has/is exacerbated the rental crises and demand for government subsidised rental housing.
Draconian
Premier’ Keneally proposed draconian State planning powers, primarily are to target freehold land use, of both strata and company title apartment blocks are
Threatened, especially, smaller blocks of 4 to 8 units that were once freehold exclusively rental housing stock forced to strata lots by State land tax policy.
Premier Keneally invitation to Intimidation
Already a case is rising where a speculator has purchased 3 units in a block of 4, and now wants the block sold to a developer to collect the profit. .
The speculator has reminded the minority owner of the Premier Keneally’s proposed compulsory resumption,a threat, to intimidate this minority owner.
This example is in the seat of Coogee, it will be watched with interest to see ,following the compulsory resumption of the minority owners apartment,if, the land is rezoned then on sold to a developer
Development madness
This compulsory resumption proposal reeks of a Government possessed by Development madness,a government that has completely lost touch with the electorate.
The constant dilution of the Wran governments planning legislation [1981] by subsequent state governments has been significantly accelerated by this Labor government, advised, by a conniving State Treasury.
Premier Keneally recently removed local council’s from the building approval process, also their powers to supervision and enforce compliance
Local building and development standards have also been reduced.
So what is next? The forced resumption of private property, then value add by rezoning, then on sell to a private developer for them and State treasury to profit.
Has government gone mad?
Watch these areas. Areas also planned for massive increases in housing densities, lay within the City of Sydney council area. They contain freehold land used for general industrial services.
— Alexandra — Botany–Redfern –Rosebery — Zetland — Waterloo etc. The Premier is also -Minister for Redfern, and Waterloo?
Does Premier Keneally planning madness include
Freehold land use in these areas will be subject to State resumption for subdivision into strata lots. Will they also be subjected to the State and Council becoming partners to resume then value adds by rezoning, then on sell to developers to profit.
Already the State is underminingIndustrial freehold land in these areas with state land tax agenda , directed at small business use of freehold land.
Oh what a potential Machiavellian scenario.
Just the The Green Square program alone will inject massive increased population and housing density into this area,enabled by, State land tax agenda to uundermining existing use of Freehold land, promoting subdivision into numerous strata lots, in multi-level buildings.
A large percentage of which will be government /subsidised rental housing
These areas are in the Federal Seat of Port Jackson, where the member constantly calls for increased housing densities, to be significantly financed by the Federal Treasury.
Aware such density can only be provided on the existing freehold land stock, also aware of State Treasury land tax agenda to undermine freehold existing use.
Labor is concerned with gentrification in once safe labor areas ,accordingly, massive housing densities is believed to reverse this trend.
Planning by economist [God help us]
Planning is a victim of economists directing our society; attached connected to finance industries ,government . A bank economist was reported as say ,”State Land Tax is good and efficient tax” not surprising as Banks are the main beneficiary when Freehold land is subdivided into strata lots ,AFTER , State Treasury.
Do Banks pay state land tax on their massive portfolios of registered equity interests in land as mortgagee ? = NO. That is sole responsibility of the owner /registered proprietor . Perhaps Bank economists are saying ” land tax is a good efficient tax for Banks”, it manufactures numerous strata title from freehold land compounding their lending opportunities.
Silence – Land Tax attack upon rental housing
NSW State government members’ silence on these issues is disconcerting, yet , they call for action to address the rental and housing affordability crises, saying nothing about State Government land tax policy , I repeat, is deliberately designed to undermine existing rental housing ,on freehold land if privately funded.
We live in times of government selling essential services [as our free market economist], and sees almost everything corporatized –BUT! Not government rental housing that is a growth industry a government domain for political manipulate, and advantage.
Is it all about affordable housing?
As Council’s are used to grow State Government housing stocks
Considerable Government housing is sourced by Council’s approving generous FSR bonuses,or, overdevelopment for residential strata housing on freehold land.
This over-development bonus is conditional on the developer donating, or leasing back at reduced market rental a percentage of total Units.
The City of Sydney participates, and like other councils various housing groups, exempt from land tax, often manage this rental stock.
It is interesting no Sydney region council or the various social housing groups have raised concern about the impact of State land tax, on their districts private rental housing stocks.
Also,have not raised concerns about unpegged State land tax being imposed in direct competition with council pegged land tax we call “rates”.
We do hear local government leaders calling for an end to council rate pegging,if put into effect would be a disasterious for existing Freehold land use ,and is the mantra of ‘The Property Council” . State land tax would have to be withdrawn.
A radio commentator was critical of the Valuer General’s conservative land values.
The commentator Alan Jones criticized the Valuer General for imposing conservative land values for land taxing by both State and Council’s .
The Valuer General now values land up to market value, however, councils receive no advantage because.
Council’s land tax “Rates revenues ” are pegged to Cost Price Idexannual increases
All the additional land tax raised on increased land values went/goes to State governmentbecause State Land tax is unpegged .
Rental housing, and small business were/are the real victims,of increased land values, to the joy of State treasury, and the development lobby who benefit from land taxing Freehold land
Alan Jones may not have been aware. How? and Why? State treasury exploits the mass valuation process and methodology to undermine existing use of Freehold with a State land tax agenda,enhanced by the removal of transparancy of land values and ownershipe
removed by the New Souty wales Carr Government thathas seriously impacted the intergrity of the valuation methodology used to set land values for land taxing . DONE by removing public access to each Council’s ‘Valuation Rolls ” only the State valuer “The valuer General” sets.
I have attached samples of the 08-09 survey comparing Council land tax “rate” revenues, with State land tax raised in council areas.
The attached councils are —City of Sydney —- North Sydney—- Waverley.
All councils are available, Including tracking State land tax since 2001.
– Sydney
– Waverley
– North Sydney
Mike Danzey
Reg. Real Estate Valuer.
Chairperson of – Bronte and Tamarama Society. [1971]
Convener of – Land Tax Forum.
On 17/03/2010, at 4:44 PM, Tammie Nardone wrote:
Dear Mike
Clover has asked me to respond to your email about proposed new planning laws.
Clover shares widespread concern that the State Government is proposing to rush through Parliament legislation to establish a new “Metropolitan Development Authority” that would have power to compulsorily acquire land for private companies to construct and sell housing for profit. Media reports indicate that the Authority would have power to decide what should be considered an urban renewal site, to acquire land and to ”partner with councils” to rezone it.
Clover is concerned that if this proposed legislation is passed, the new Authority will be a wasteful duplication of government responsibilities that will restrict community and council involvement. She will closely assess the legislation when it is presented to Parliament.
With regard to land tax, Clover has previously made representations to raise your concerns about the NSW land valuation and land tax system, however it appears unlikely that the Government will change this system without a concerted community campaign for reform.
Regards
Tammie Nardone
Research Assistant/ Policy Officer for Clover Moore MP
Independent Member for Sydney
If you live in Clover’s electorate, we may add you to the list for Clover’s weekly eNews bulletin to keep you up to date.
This email is solely for the named addressee and may be confidential. You should only read, disclose, transmit, copy, distribute, act in reliance on or commercialise the contents if you are authorised to do so. If you are not the intended recipient of this email, please notify me by email immediately and then destroy this message. Except where otherwise specifically stated, views expressed in this email are those of the individual sender. The New South Wales Parliament does not guarantee that this communication is free of errors, virus, interception, or interference.
>>> Mike Danzey 12/03/2010 7:26 pm >>>
Dear Clover,
You would have read the herald report today, by Matthew Moore.
* The State Government is proposing to resume private property, and sell to developers.
This is proposed while ….
* Already, the State Government gives locale councils, powers to acquire privately owned freehold land, then for council to rezone, and on-sell to developers.
* Already, the State Government has fast track the building approvals of public housing; to address housing/rental problem, significantly exacerbated by State land tax agenda.
* Already, the State Government ‘New Development Approval Regime’ bypasses council’s controls, and has lowered locale development control standards.
Also, residents have been isolated from their council’s assistance to administer compliance, and locale development standards.
I would be interested in your response to the above, as your position as Lord Mayor, and State Member for Sydney, is unique.
Also, the issue raised with you in my email to you of 25- 2- 2010
Regards
Mike Danzey
Begin forwarded message:
From: Mike Danzey
Date: 25 February 2010 7:32:25 PM
To: Clover Moore
Cc: LOP
Subject: Fwd: Blog: Same Old Labor Government, Nothing Changes
Dear Clover
I make the following comments as a Registered Real Estate Valuer, and owner of exclusively affordable rental housing, provided on Freehold land. [Blocks of rental flats]
I would be interested in receiving your reply.
State Treasury Exploits Mass Valuation Process, to under-mine existing Freehold land use.
A major factor WHY -Un- pegged State Land Tax, impacts Freehold land use, is Treasury exploitation of the Mass Valuation process, that was intended to set Locale Councils valuation rolls
As you know, Council must apply the same tax rate to all liable land in the same class. The intent was to ensure equity, accordingly, all land valuations for taxing, deemed land Vacant, imposing a taxing value accessed using a common base, applying qualified locale market data.
The process was intended to be” Transparent ” open to ensure fairness the funding of Council’s be equitably distributed among Rate-payer’s.
The Carr Government removed Rate -payer access to Council valuation rolls.
State Land Tax is imposed by the same land valuation process used for setting councils land taxing values. Accordingly, existing use is ignored, so to impose a State Land Tax on redevelopment value of land used
and developed years before as Exclusively Rental housing stock, it is not difficult to see the intent of Treasury, applying a State land tax, on current land values, and annually adjusted then apply a Tax rate conspicuously higher then the Locale Council land tax rate. Existing use is undermined, and the improvements made economically obsolete.
Rental Housing, in Sydney’s Inner Suburban areas was well established before, and after WW2.
Example how Treasury imposes State Land Tax HIGHER then the Locale Council Residential land rates — 08/09
Canada Bay—999% Sydney —- 725%— Leichhardt— 586%—-Randwick—921%—–Waverley—- 1151%—- Woollahra—2931%
Hornsby 1223%— Lane Cove 943%— Manly — 913%— Mosman— 2204%— North Sydney 2177%— Gosford—- 645%—
Bankstown—514% Camden— 839%— Fairfield— 801%— Holroyd— 1046%—-Hurstville — 642% —– Kogarah— 10015— Liverpool—1053%
Hotel accommodation lost.
Another accommodation Hotel in the Kings Cross area is about to close, adding to sorry story that is the Kings Cross area today.
The Crest Hotel closure, and proposed Strata conversion, follows the Strata conversion and loss — Gazebo — Rex —Top of the Town–Hampton Court— Sebel —The Old Chevron—etc etc, about 16 in all.
Common to all these closures is the destructive impact of State Land Tax. a problem already raised with you , how, State land Tax is designed to under-mine Freehold Rental housing, and Small Business.
Rental housing exemption if within 3-mile radius of GPO, and low rental.
Last year you responded to problems raised by crippling State Land Tax, imposed on the only two remaining “Exclusively Rental Freehold Housing Blocks left in the Kings Cross area.
Treasury was contacted, who then sent me application forms for exemption form State Land Tax, because, these Blocks were within a 3-mile radius of the GPO, and if rentals did not exceed a certain level.
An applications for exemption will be made for the 2010 assessment, BUT! Exemption is not expected, clearly the rentals levels to receive exemption ‘reflect substandard rental housing in the City of Sydney area’.
A Rental Crisis
The community is told of rental crises, especially in Sydney’s inner LGA’s. Yet, the State Government imposes crippling Land Tax on Freehold rental housing, if privately funded, clearly exacerbating the rental crises. Also, demands for State, and Federal funding to provide Public Housing.
This occurs, while vested interest groups, almost hysterically, call for greater Strata housing densities and removal of existing Freehold land use.
Treasury loves these vested interest groups that includes all the Banks.
They are the means of delivering to the State the ‘Tax Eldorado’ from rows of Stacked Strata housing, [I call ‘Boff Stack Housing’] Immediately GST—Stamp Duties etc is generated. Then when developed using existing Freehold land, a multiplier factor of Stamp Duty revenue is also delivered from massive increases in density Strata development.
The tax attack on Freehold land has been increasing since the commencement of the Strata tile Act 1960. Early 1980s SEPP 10 was introduced to save Freehold rental blocks, until Treasury Tax agenda was to destroy them.
A Planning agenda driven by Taxation is a disaster for Sydney.
This un-announced agenda of Treasury is Treasury model for a growth Tax industry for NSW. Forget about Freehold Industrial land for manufacturing industries ,Rental Housing etc ,or, State ownership of essential services ,
Treasury wants them either converted to Strata, or Sold for Strata development.
A Planning agenda by Taxation without consultation. A Planning agenda that is a disaster for Sydney, under-mining Local communities desires to retain Housing standards, and classic Suburban mix of housing that Freehold land provides.
Treasury, Planning by State Taxation is a disaster, it is Planning has gone Mad, or corrupt.
Treasury even promoted the conversion to Strata of Freehold land.
36, and 38 Kellett is exclusively -affordable rental housing that can only be provided on Freehold land . The use is well maintained , occupied with tenants employed in the inner City area, Cooks –Teachers—Secretaries. etc.
BUT! Does State Treasury care –NO!, Treasury State Land Tax agenda, wants this Rental building converted to a Strata sub-division, or demolished, and the Site redeveloped as Strata.
Treasury even provides generous Land Tax incentives to do so
E.G.
Each Strata Unit can be given a tax-free threshold [2009 about $360,000.0 each]
Compare with ten [10] Freehold rental flats that receives only one threshold of $360,000.0
In other words if converted to Strata, State Land tax may not apply until land value is about $3,600,000.0, No State land tax.
When converted to Strata the use is no longer exclusively rental housing.
The Villages of The City of Sydney are under attack, from State treasury land Tax agenda. So is almost everywhere else.
Treasury agenda is clear. ‘Impose Un- Pegged State Land Tax on freehold land ignoring existing use as, exclusively rental housing, thus rendering the use economically obsolete’ and this is occurring in all Sydney LGA’s
You advocate resident involvement in Planning. The City of Sydney is a City of Villages. Those Villages, and Planning are under attack by State Treasury Agenda to undermine Freehold land if used as Rental Housing — Commercial / Industrial Small business.
From: Mike Danzey
Date: 23 February 2010 8:07:19 PM
To: LOP
Subject: Re: Blog: Same Old Labor Government, Nothing Changes
Dear Barry
Thanks for the information. What the Premier has announced appears a reshuffle of transport projects already announced.
GST revenues have been flowing to NSW about 10 years now, flushing additional $Billions into State Treasury. Along with increases in almost all State Taxation, plus, the sale of State Assets.
* The electorate is asking, where has all the money gone?.
Also, concerned of State Treasury agenda to promote the sub-division existing Freehold land, into Strata. It appears Treasury major State growth industry for NSW, in conflict with Local environmental planning and without mandate to use a taxation agendas to under-mine existing use of Freehold land, and promote strata developments.
I would be grateful, if, you could provide me, State Treasury projections for — GST, — State Land Tax, and — Stamp duties, over the next 5 – 10 years. Income flows that Treasury would have provided
The Premier with, otherwise, how could the Premier, announce grand Transport plans for Sydney, and advise they are fully funded?” Treasury must have provided funding projections .
What degree does Treasury revenue projections rely on property taxation from ’Strata Housing’ that replaces existing freehold land use, Treasury existing policy already under-mines with State Land Tax.
The liberals surely will win a popularity contest from NSW voters, against the current image of the NSW Labor Government although; it would be a mistake to believe Government will fall into the Opposition lap.
The difficulties State taxation is causing Small Business, Rental Housing use of freehold use, hopefully, the Liberals will address.
One obvious problem is State Treasury exploitation of the Land Valuation methodology that sets taxing values. Treasury is aware the mass valuation of land process was intended to set
Local Government valuation rolls in each Council area for Land Rates. This process intent , was to equitably distributed land taxing to funding Locale Councils.
Council’s must apply a common tax rate to all liable land in the same class. The intent, also, the process be transparent to ensure equity. The Carr Government removed “Public access” to council’s valuation rolls.
The process values all land from a common base ‘Site Value’ [vacant ready to build], ‘accordingly, existing use is ignored’. It is not difficult to see how un-pegged State land tax under-mines existing, and imposed at conspicuously higher tax rates then Council land tax rates.
Eg Residential 08/09 extent that State land tax EXCEEDS Council rates.
Fairfield 801%
Holroyd 1046%
Kogarah 1046%
Liverpool 1053%
Rockdale 775%
Hornsby 1223%
Ku-ring-gai 892%
North Sydney 2177%
Pittwater 918%
Willoughby 1099%
Auburn 787%
Canada Bay 999%
Randwick 921%
Strathfield 1582%
Waverley 1151%
Woollahra 2931%.
Council Rate pegging provides un-pegged State Land tax, one of its stealth factors, to avoid the general public’s radar.
Imagine the impact on Freehold land use as we know it “if Council land tax was un-pegged”. Treasury agenda to convert freehold to strata by land taxation policy would be achieved, but would be politically dangerous to deliver, as an important stealth factor is lost, awaking public opinion.
The current Labor Government consistent dilution Planning standards, I believe, is also driven by Treasury, urged on by other vested interest. The Premier has been at the forefront of diluting Planning regulations, constantly advocating density housing, promoting Strata subdivision of existing Freehold land. The new DA approval process the Premier removed Councils compliance standards, and controls, that has left Residents to ensure compliance, and defend their homes.
We need to provide density housing, good planning, in consultation with communities should only drive it. Never driven by State Treasury current greed for property taxation, that promotes the present policy to generate State revenues from property taxation. and strata developments.
This policy is responsible for under-mining housing that provided exclusively rental housing stock, significantly contributing to the crises in availability of affordable housing stock, while undermining Small business.
Treasury call is “WE need the revenue”. Yet! Treasury, and vested interests never provides the cost to the State, and Federal Government to provide public housing, so obviously exacerbated by Treasury tax attack on existing rental housing, ESPECIALLY, on Freehold, providing exclusively rental housing, privately funded. .
Thanks Barry for inviting comment. Sydney transport needs are integral to Sydney’s existing needs. It is a concern, the Premiers transport announcements, I suspect, has a lot to do with promoting strata housing developments.
Planning that threatens this wonderful City, is eroding its outstanding residential mix, and environment.
I wish you well
Mike Danzey
Reg. Real Estate Valuer.
Convener of “The Land Tax Forum”
On 23/02/2010, at 4:02 PM, Barry O’Farrell wrote:
Dear Mike
Anyone thinking that another Labor face in the Premier’s spot on Labor’s Parliamentary benches would be something different, only has to look at last weekend’s Labor transport announcement.
This is the tenth time we’ve heard this sort of thing from Labor – and each new ‘plan’ gets filed in the fiction section of our local libraries.
Click here for what long-suffering public transport users are probably really expecting to hear on rail station announcements.
I’ve been saying for months that the NSW Liberals & Nationals will scrap the flawed Metro proposal, and get on with building the North West and South West rail links.
But now, Labor will be gouging innocent transport passengers and car owners – including country and regional motorists who don’t live anywhere near these projects, to pay for millions in compensation to businesses hit by the
Metro fiasco.
We all get slugged for Premier Keneally’s incompetence – how much more in compensation claims have been racked up since she was installed in the job three months ago? Why didn’t she do something earlier?
Dithering on this and other issues just costs everyone more – and eats into the weekly budget of everyone in NSW.
In Parliament this week the NSW Liberals & Nationals will be standing up for NSW residents who continue to foot the bill for Labor’s projects that they will never see, except in glossy brochures.
Last week I detailed our NSW Liberals & Nationals policy to establish Infrastructure NSW – a practical plan to ensure the right infrastructure decisions are made for communities and businesses and that major projects are delivered on time and on budget.
Barry O’Farrell MP
NSW Liberal Leader
Feel free to leave me a comment at www.barryofarrell.com.au