Paul Pearce: Coogee land tax

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.

 

I have sent subsequent reminders, to date no response from you..

Question 1.
Will you be supporting [voting] for this proposed acquisition of private property, to be on sold to developers?

Today the State Government has proposed a sales tax [capital gain / exit tax, call it what you may] on sale of land.

Question 2.
Will you be supporting the introduction of this tax?.

From July 09 State Land Tax was increased 20% when land values exceeded $2.25 million. You supported this increase despite In your electorate of Coogee [most inner Sydney electorates] freeholds land used exclusively as rental stock is clearly the intended target.

The Sydney Morning Herald of 8th and 9th May 2010 advertised for sale numerous exclusively as rental blocks of flats, all victims of The State Government policy to undermine freehold land used as rental stock imposing a deliberately designed Land Tax to do so, I will accept the opportunity to debate with anyone ‘State land tax is deliberately designed to undermine rental housing, and small business use on freehold land

Done, while the State Government feigns concern of a rental housing crises ,and calls hysterically for massive increased Strata housing densities for both private ,and government [so called “Social Housing] on freehold land .

The proposed resumption of private strata lots is to return a site to freehold title, then rezone [ greater density of strata lots ] before selling to developers. A recipe for corruption. The Premier, has already removed councils from building approvals, and responsibility for compliance, also local building, and development standards have been reduced.

Paul, you also supported this.

In Wiley Street Waverley [Coogee electorate] a block of 4 flats is being sold, all tenants have been given notice to vacate . Tenants have been advised the sale is because State land tax has succeeded in undermining viability as freehold land used exclusively for rental housing. In Bronte an owner has received a land Tax bill for $16,000. on a block of 4. [about 20% of gross rent] That will also be lost as exclusivly rental stock, and tenants required to vacate and the block sold off as strata units. following the fate of numerous other rental blocks in your electorate.

Question 3.
Why did you support a 20% increase in state land for tax year 2006? Why did you support a further 20% increase in state land tax for tax year 2010?.

“Aware state land tax is not adjusted to annually increases in Site value of land” .

The State government pegs council land tax [rates]. Yet, Council rates are imposed on freehold land using the same valuation methodology the State imposes land tax! Yet, two councils Randwick and Waverley are both in your electorate, The tax rate of State land tax in 08/09 exceeded both council’s residential rate on freehold by…

  • Waverley – 1151%
  • Randwick – 921%

Question 4.
Why, in 08/09 did State land tax exceed the above councils residential rate on freehold land use?

Question 5.
Can State land tax as currently imposed continue if council rate pegging was removed?

I would be pleased to receive replies to the above questions ASAP.

I am sorry to feel the need write to you about these issues, that have raised constantly, once resulting with you arranging an interview with treasurer Michael Costa, who handed my submission to the treasury officer who attended. A response has never been received.

Regards
Mike Danzey. reg. Real Estate Valuer.
a constituent of the State seat of Coogee.

From: Mike Danzey 
Date: 12 May 2010 7:45:47 PM
To: Paul Pearce