Media Release

Peter Gutwein MP
Shadow Treasurer

Friday 11th December 2009

More losers than winners from Land Tax back flip

In Tasmania last year, there were around 52,000 properties that paid Land Tax. As a result of David Bartlett’s back flip yesterday, nearly 90% of these properties will not receive any relief this year.

This is because in reducing the tax rate on land valued at $350,000 and above, Mr Bartlett’s changes are targetted at only the very wealthy and predominantly CBD land in Hobart and Launceston.

It is a fact that outside of the major population centres, very few businesses are on land worth more than $350,000. This announcement will do very little, if anything, for rural and regional Tasmania. These businesses are still subject to massive increases of above 100% and will receive no benefit from the change to thresholds and rates.

Also, shack-owners will have to wait another 12 months for relief and will still be forced to pay this year’s huge bills. Many shack-owners wouldn’t have even received their Land Tax bill yet and would be unaware that yesterday’s announcement will still mean they pay more for Land Tax this year.

And if they rent their shack to other family members or friends, as many people do, they will get no relief at all.

I am very surprised that organisations that purport to represent the interests of business, both large and small, would offer their support to a policy that provides little or no support for small to medium-sized business.

To say that yesterday’s announcement shows the Government has a heart glosses over the very real concerns that many businesses and property owners have about their future and the future of the Tasmanian economy.