Tens of thousands of South Australian mum and dad investors will benefit from lower land tax bills as a result of the state government’s historic reforms, which deliver more than $200 million in total land tax savings over three years.
Under the changes, which came into effect in July, the overwhelming majority of non-trust investors (92%) and company groups (75%) will pay LESS land tax.
Of the remaining few (8% of individuals) who will pay more due to aggregation changes, the government has introduced a Transition Fund for 2020-21 which will provide full relief from any increase as a result of aggregation above $2,500 for eligible taxpayers.
“Our significant reforms will not only benefit 92 per cent of mum and dad investors and 75 per cent of company groups, we have massively slashed the top tax rate from a national high 3.7% to an unprecedented 2.4% - driving economic and jobs growth and business investment,” said Treasurer Rob Lucas.
“Our aggregation changes have created a fairer, more equitable land tax system which means you can no longer hold $3 million in 8 separate companies and not pay a single dollar in land tax.
“Of the very small number of investors who will pay more this year due to the aggregation changes, the Government will provide 100% relief on any increase above $2,500* this financial year for eligible taxpayers.
“These positive reforms have been welcomed by a wide range of industry stakeholder groups, including the Property Council and Business SA, who acknowledge they will deliver a more competitive, investment-attracting environment for the state.”
*There may be limited number of people whose land tax bills rise due to a significant increase in their property value(s) ie not related to aggregation. Site values are determined by the independent Valuer-General. Relief under the transition fund is not available on increases in land tax bills due to higher trust rates of land tax that may be payable by certain trusts, or where the increase in the land tax assessment is above $102,500.
Learn more about the Transition Fund.
Sourced from the Premier of South Australia’s website: Huge land tax savings for mum and dad investors, as reform drives jobs growth