Dear Mr Perrottette,
Regarding your proposal that a wide-based State Land Tax (SLT) replace Stamp Duty (SD)
We seek information how the proposed wide-based SLT will be imposed in
NSW.
This is a monumental change to NSW land taxation that requires
explanation. The information requested
would be available accordingly, and we would appreciate receiving the
information ASAP.
Preamble
This is fourth time the current State Liberal/National Government has
proposed a wide-based SLT. For example:
- Mike Baird as Treasurer proposed a 0.7% wide based SLT.
- Barry O’Farrell as Premier proposed a catchall levy and nominated the
initial level of tax - Gladys Berejiklian as Premier proposed a catchall levy to fund emergency
services.
Additionally, the previous Carr/Egan State Labor government:
- Imposed a premium property tax that was outrageously selective and
failed - Imposed a catchall SLT on all NSW business property by removing the
tax-free threshold. This lasted just one year.
As stated, a wide-based SLT is a monumental taxation change requiring a
full explanation from any Government proposing it. Accordingly, initially
we seek the following information:
- Will SLT be imposed on all family homes – Farms etc?
- What is the projected initial Tax Rate of the proposed SLT.
- Will SLT tax rate be common to all land uses?
- Will land values be imposed using “Valuation of Land Act 1916”
methodology? - What will be Re – valuation circle . Annual like current SLT regime?
- OR, Will a universal levy be imposed on “all land use”?
SD on land sales in Council areas 18-19 to November. Total State SD $7
Billion [ conservative]
SLT raised in Sydney council areas in 2020. SLT $6 billion + [
conservative]
Example. SD 18/19. and SLT 2020 raised small number of Sydney Council area
| Council Area | Stamp Duty | Land Tax | Number liable for Land Tax | |
|---|---|---|---|---|
| Ryde Council | $150,000,000 | $116,00,000 | 8954 | |
| Willoughby | $130.000.000 | $97,000,000 | 6225 | |
| Woollahra | $280.000,000 | $105,000,000 | 6656 | |
| Waverley | $125,000,000 | $100,000,000 | 9112. | |
| Inner West | $220,000,000 | $215,000,000 | 18,746 | |
| Ku-ring-gai | $235,000.000 | $ 66,500,000 | 5244 | |
| Northern Beaches | $410,000,000 | $178,000,000 | 5,045. | |
| North Sydney | $310,000,000 | $102,000,000 | 8399 |
SLT was reintroduced in 1955. All subsequent NSW governments prodigiously
expanded and increased SLT, especially in the years since 1980—90s,
undermining the fiscal viability of numerous exclusively rental housing
apartment blocks if privately owned or funded. SLT also adversely affected
small business need of a freehold site. A wide-based SLT has the potential
to destabilise Family Homes on freehold sites.
SLT is a planning weapon designed to fiscally erode existing use of
freehold land. We need to debate if SLT should be a Federal tax making it
equitable or if it should be abolished.
Yours faithfully,
C.J. (Mike) Danzey, Qualified and Certified Property Valuer