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Land tax budget changes

Discussion in 'Real Estate' started by Jacque, 11th Jun, 2006.

  1. Jacque

    Jacque Team InvestEd

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    PROPERTY investors now face less fluctuation in land taxes after changes made in the recently released NSW budget.

    From the 2007 land tax year, land values will be calculated using the average over the previous three years, with the land tax threshold also to be changed, to be indexed to the three-year average of the change in statewide land values.

    "These measures will save investment property owners $57 million in 2006-07 and $395 million over four years," Mr Costa said.
     
  2. Leandro

    Leandro Well-Known Member

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    Won't it mean investors will pay more land tax in a declining market though?
     
  3. Jacque

    Jacque Team InvestEd

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    It certainly appears that way but I guess the upside is that, in a booming market, it will even itself out ;) The impact won't be as sharply felt as investors can possibly plan ahead to find a way to pay for these real cash costs, based on previous years averages.

    What it doesn't change, however, is the massive windfall that the NSW govt has made over the last decade in land tax revenue. Since coming to office 10yrs ago, the money earned from land tax has trebled!!! A rate reduction, as well as a higher threshold amount, would lessen the pain somewhat for all investors.