Rising pressure on landlords
LAND TAX HIKES
I AM in complete agreement with Richard Lennard’s letter in regards to the dramatic increase in land tax as calculated by the Hobart City Council (“Wrong time for land tax shock,” Letters, October 10). It was a large shock to get the letter from the State Revenue Office with the adjustment factor of our land tax being 1.5 compared to previous years. I cannot believe there is any justification for this absurd hike in land tax given the added pressure on landlords with the challenging combination of reduced rental income and an increase in landlord insurance.
Both landlords and tenants should be worried by this development. For the former it means reduced income ( a lot of retirees’ main revenue stream is from their investment property) and for the latter it will mean an increase in rents eventually. The state treasury needs to conduct an urgent assessment and adjust the land tax values to better reflect our current times — this may indicate a hike in proportion with CPI index. Tripta Verma Lauderdale
MODEST SHACK, MASSIVE LIFT
I CONCUR with Richard Lennard’s letter on the significant increase in land tax at this time. Don’t get me wrong, I don’t oppose the principle of paying land tax on a second property. It is the dramatic hike in the tax in such a short period that concerns me. As an example, my small East Coast property with modest shack ( and great view) attracted land tax of $ 1151.70 in 2017- 2018. Three years later, in 2020- 2021, this has nearly quadrupled to $ 4012.50. The intervening years also saw increases. And nothing changed for the property itself.
I understand the issue of adjustment factors and different tax brackets, but surely this increase is beyond the pale on a property which has no kerbs and guttering, no connected water and sewerage, and which borders a Crown land reserve where no investment is made by relevant agencies in its upkeep or fire risk mitigation.
The way in which this tax is assessed needs urgent review.
Kim Boyer
Spring Beach
BOTTOM LINE
I TOTALLY agree with reader Richard Lennard (“Wrong time for land tax shock,” Letters, October 10). Prime Minister Scott Morrison said all states and territories should lower land tax rates to help out landlords and landowners during COVID.
Councils have kept rates at approximately the same as last year to help out. As Richard wrote, the state government imposed restrictions on rent increases and evictions but at the same time after a 10 per cent increase in assessed land value last year added another 10 per cent this year.
Do as we say not as we do. A $ 350,000 land value costs $ 1836.50 per year, an average block costs $ 462.50 per year.
If the $ 350,000 bottom line is not increased with the CPI or another type of inflation rate scale, the cost of the average block is $ 1386 in 20 years just for land tax.
Since 2014 Derwent Valley Council land value increased by 10 per cent, and land tax assessed value by 46 per cent. Council rates increased by 29.5 per cent, land tax rates by 131 per cent, 2014 $ 350,090 property land tax is $ 1837.50. In 2020 with land tax rates this same property will cost about $ 4300 for land tax alone. You’ve lost my vote.
M. Rowland
New Norfolk at
TENANTS TO FEEL PAIN
$ 100,000
THE latest land tax increase of nearly 30 per cent by Mr Gutwein’s government is an unprincipled extortionate impost amid the greatest economic recession since the 1930s.
The land tax on our property now represents 40 per cent of its annual income from rent. The increase in land tax will take the week’s rental cost to our tenants up by 10 per cent just to stay even.
I am sure our tenants, and many others around the state who are probably experiencing economic hardship because of Mr Gutwein’s policies, will remember this at the next election. Miles Harrison Blackmans Bay