Media Release

Will Hodgman MP
Leader of the State Opposition
Peter Gutwein MP
Shadow Treasurer

Wednesday 20th January 2010

Abolishing land tax

A Hodgman Liberal Government will abolish land tax over eight years, commencing in 2011/12.

Leader of the Opposition, Will Hodgman, said:

“The Tasmanian Liberals have consistently argued that land tax is an unfair tax that stifles investment and costs jobs.

“Over the first term of a Hodgman Liberal Government, some land tax bills will be cut by as much as to 40 percent.

“For example, a business with land valued at $1.4 million will pay nearly $25,000 less over the next four years under a Hodgman Liberal Government than a Labor Government. This means the business will save around 40% on their Land Tax bill under the Liberals compared to Labor.”

“We were the first party to identify that changes needed to be made to the States land tax regime and while the Labor Government have belatedly recognized that an issue exists their policy response was did not go far enough.

“We are the only party committed to abolishing land tax in Tasmania.”

Shadow Treasurer, Peter Gutwein, said:

“A Hodgman Liberal Government will cap land tax receipts at adjusted 2009/10 levels.

“In 2010/11 bills will be capped at 2009/10 levels and we will then begin progressively stepping down land tax receipts until it is completely abolished, starting with a five percent cut in 2011/12 and ten percent cut in 2012/13.

“Under our plan, all land tax payers will benefit from our plan to abolish land tax – not just those with property valued at over $350,000 as under Labor’s policy.

“All of the recently announced changes to Land Tax will be honoured by a Hodgman Liberal Government.”

QUICK FACTS

• Land Tax will be capped at the adjusted (after rebate) 2009-10 level;
• Because we are capping Land Tax, property revaluations in the future for Land Tax purposes will not be needed;
• Land Tax bills will then be reduced from 2011-12 every year until Land Tax is abolished in eight years time;
• This means that all Land Tax payers will receive reductions in their bills compared to this year’s bill of up to 40% during the first term of a Hodgman Liberal Government;
• All Land Tax payers, whether they be small business, big business, investors, shack owners or first home builders will all benefit under the cap and cut plan;
• New land entering the system after the cap is put in place will be taxed at the same reduced rate as similarly valued land.