REINSW is currently lobbying the state govt for an abolition on land tax for all residential property, as it believes that market forces alone will not be enough to avert what it views as a looming rental crisis in NSW. Along with the recent super changes (which may well see approaching retirees dump their IP's in favour of more attractive tax free benefits in super) and the waning investor activity in NSW, it is going to leave many tenants saving their pennies not for home deposits, but increasing rents, at least until investors re-enter the market. Land tax has become a real hardship for many of us over the past five years, as values have soared and thresholds not increased enough to cover costs. Yet the NSW govt has reaped the rewards and fattened it's pockets with this revenue source so I can hardly see it backing down now and getting rid of the tax altogether. What alternatives do you as investors see as realistic solutions to this ever growing problem?