According to a report by Deloitte Access Economics, the South Australia government's property revaluation initiative could result in higher taxes, generating millions of dollars in additional tax revenue.
The Property Council of Australia instructed the company to determine the consequences of an increase in the number of properties and their effects on the property tax.
"This exercise may put commercial property owners out of business and dramatically increase the property tax bill for" parent "homeowners," said Daniel Gannon, Executive Director of SA. "In a scenario where property values ​​would increase by 10%, the state government could generate $ 75 million in additional revenue from property taxes each year, the bulk of which would be provided by the government. commercial sector. "
Specific details of the government's re-evaluation program are not yet publicly available, but the Australian Australian Evaluation Office began the program in mid-2018 and is expected to take five years to complete. carry out. The program would likely include "more rigorous evaluation and data collection methods, more physical inspections at the sites, and less reliance on currently used mass assessment techniques." It is widely accepted that this process will increase the value of official lands in southern Australia and, as a result, increase property tax obligations for homeowners, according to the Deloitte Report.
Gannon warned about the viability of the entire real estate industry, whether the plan was implemented, especially in a situation where valuations increase by 20%, 30% or even 40%.
"Given the low incidence of institutional investment in South Australia, it is possible that large increases may lead to the bankruptcy of privately owned family businesses or small businesses. Taxes and costs must be passed on, which means tenants and tenants could be affected, "he said.
According to Gannon, state property tax rates must be adjusted immediately to counter the expected increase in tax revenues. Otherwise, the government's proposal could increase the risk of bankruptcies, increase costs for tenants and put an end to investment funds.
Gannon said the following reforms would be needed to achieve a revenue-neutral scenario after a 10% increase in the value of sites: rates in the highest marginal tax bracket should from 3.7 to 3.05%; rates in the slice below would increase from 2.4 to 2.15%; rates in the next range would fall from 1.65 to 1.42%; the rates in the lower bracket would fall from 0.5 to 0.43%
Whether you're looking to buy your first home, move, refinance or invest in a property, a mortgage broker can help. Get loans from all major lenders, get help with paperwork – not to mention that this service is free. Get help from a local mortgage broker
Top suburbs:
Lockridge
,
Greenwood
,
East Victoria Park
,
Kariong
,
alexandria
Get help for your real estate investment
Do you need help in finding the right loan for your investment?
When you invest in real estate, it is important to make sure that you do not only have the lowest available rate that you can get, but you also have the features of ready adapted to your needs.
Just fill in a few details below and then we will arrange for a local Australian mortgage broker to contact you and sort out the problem What features or what types of loans are suited to your needs? We will even help with the paperwork. In addition, an appointment is free.
We value your privacy and treat all your information seriously – you can check
our privacy policy here
