Figures from Valuer General Philip Western show that residential land values across NSW fell 0.06% in the 12 months to 1 July, 2006, indicative of a broadly flat housing market.
“This is good news for residential land tax payers, as the amount of land tax they pay is determined by the value of the land,” said REINSW President Cristine Castle.
“However REINSW does not believe that these people should be paying land tax at all. We have been lobbying the NSW Government for the abolition of land tax on residential property to help stimulate property investment in this state.
“Unless the NSW Government takes action, there won’t be enough rental properties available to meet the increasing demand from tenants.”
Land tax in NSW is currently imposed on properties other than the principal place of residence (with exceptions such as agricultural land, churches or schools). It applies to the total value of all taxable land held by a taxpayer in excess of an average $352,000 calculated over three years.
“Property investors provide a crucial supply of accommodation for renters,” Mrs Castle said. “We need to encourage these investors, not deter them with land tax.”