Victorian Land Tax rates to decrease

[dave99]

The Victorian Budget was handed down today and shows a reduction in Land Tax rates as follows:

- Increase of threshold from $200,000 to $225,000
- 1.2% rate ($1.19m to $1.62m value) to be reduced to 0.8% and combined with existing 0.8% rate ($900k to $1.19m).
- 1.8% rate ($1.62m to $2.7m) reduced to 1.3%
- 3.0% rate (over $2.7m) reduced to 2.5%
- Removal of land tax on farmland within the metropolitan area

Applies from 2008. Does this make Victoria more attractive to invest in property, or is it a drop in the ocean? I see rates have not changed for values under $900k.

-Dave99

http://www.sro.vic.gov.au/sro/SROWebSite.nsf/index1.htm

 

[Norwester]

Hi Dave,

The way I see it the battlers will have 25K more latitude before getting stung.
The other end of the market will get the better break though.

Funny that a Labour government sees it like that.............

Be interesting to read the justifications and expectations

ciao

Nor

 

[Jase H]

Hi Dave/Nor,

I agree with Nor. Will help a tiny bit for the investors (like me) currently holding a block valued at 115k might mean i can get another cheap block before getting stung or a moderately priced block and pay less then I would have.

Labour Govt seems to have lost what they are supposed to stand for hey!(it shows they just come up with a policy that costs them the least money/or saves them the most.


Jase

 

[sailor]

Gosh, and I would have thought all VIC investors would have been excited and very pleased with this news. If Land Tax had increased, I would have expected a lot of anygry/sad icons on this thread.

My congrats to all who will benefit.

 

[Michael Yardney]

The Victorian Budget was handed down today and shows a reduction in Land Tax....... Does this make Victoria more attractive to invest in property, or is it a drop in the ocean?
-Dave99

Does this make Victoria more attractive?

Land tax is probably one of the last things that you should consider when you decide to buy a property.

If you are looking for capital growth, Melbourne has a good long term track record and is at a great time in its property cycle to invest.

Land tax is just a cost of doing business (its really a form of wealth tax) but so what if you pay a few hundred dollars more or less in land tax if your $350,000 property is increasing in value by around $35,000 each year?

I've seen many investors sell property and many more not buy property because they were concerned about Land Tax. And in the end the tax changed anyway (as has happended now) or the proposed changes did not occur.

It's sweating about the small stuff and missing the big picture.

 

[ger]

They also said it went down last year
My land tax went up 31% this year that property has hardly moved
last year it went up 52.8%

 

[geoffw]

They also said it went down last year
My land tax went up 31% this year that property has hardly moved
last year it went up 52.8%

A fair point ger.

The headlines say that land tax decreased.

Meanwhile, valuations all increase.