❓ Mr. Barron-Sullivan questions the Treasurer about a projected decrease in premium property tax revenue. The Treasurer explains the decrease is due to the interaction of two land tax measures, with revenue attributed to the family trust/private company measure.
AnsweredQoN 402Legislative Assembly
Asked
20 September 2001
Member
QuestionView source ↗
PREMIUM PROPERTY TAX, REVENUE 402. Mr BARRON-SULLIVAN to the Treasurer - I refer the Treasurer to the decision of his Government to introduce a premium property tax, and refer specifically to page 27 of budget paper No 3, “Economic and Fiscal Outlook”. Will the Treasurer explain why the total revenue from the premium property tax is expected to decrease by about 30 per cent to $8.8 million in 2002-03, from $12.1 million estimated revenue in 2001-02? Mr RIPPER
AnswerView source ↗
I thank the Deputy Leader of the Opposition for his question. There is an interaction between two of the land tax measures. The land tax measure that denies the owner-occupier principal place of residence land tax exemption to indirect ownership structures, such as family companies and trusts, interacts with the premium property tax measure. Some premium properties are covered by the family trust and private company measure. The premium property measure comes into effect first, and therefore the interaction results in a reduction in revenue in the premium property tax arena, following the introduction of the second measure. The costings could have been attributed either way, but the way that the budget papers have been organised means that the measure relating to family trusts and private companies has been accorded the revenue, and consequently the premium property revenue appears to fall.
PREMIUM PROPERTY TAX, REVENUE
I refer the Treasurer to the decision of his Government to introduce a premium property tax, and refer specifically to page 27 of budget paper No 3, “Economic and Fiscal Outlook”. Will the Treasurer explain why the total revenue from the premium property tax is expected to decrease by about 30 per cent to $8.8 million in 2002-03, from $12.1 million estimated revenue in 2001-02? Mr RIPPER replied: I thank the Deputy Leader of the Opposition for his question. There is an interaction between two of the land tax measures. The land tax measure that denies the owner-occupier principal place of residence land tax exemption to indirect ownership structures, such as family companies and trusts, interacts with the premium property tax measure. Some premium properties are covered by the family trust and private company measure. The premium property measure comes into effect first, and therefore the interaction results in a reduction in revenue in the premium property tax arena, following the introduction of the second measure. The costings could have been attributed either way, but the way that the budget papers have been organised means that the measure relating to family trusts and private companies has been accorded the revenue, and consequently the premium property revenue appears to fall.
Mr RIPPER replied: I thank the Deputy Leader of the Opposition for his question. There is an interaction between two of the land tax measures. The land tax measure that denies the owner-occupier principal place of residence land tax exemption to indirect ownership structures, such as family companies and trusts, interacts with the premium property tax measure. Some premium properties are covered by the family trust and private company measure. The premium property measure comes into effect first, and therefore the interaction results in a reduction in revenue in the premium property tax arena, following the introduction of the second measure. The costings could have been attributed either way, but the way that the budget papers have been organised means that the measure relating to family trusts and private companies has been accorded the revenue, and consequently the premium property revenue appears to fall.
I thank the Deputy Leader of the Opposition for his question. There is an interaction between two of the land tax measures. The land tax measure that denies the owner-occupier principal place of residence land tax exemption to indirect ownership structures, such as family companies and trusts, interacts with the premium property tax measure. Some premium properties are covered by the family trust and private company measure. The premium property measure comes into effect first, and therefore the interaction results in a reduction in revenue in the premium property tax arena, following the introduction of the second measure. The costings could have been attributed either way, but the way that the budget papers have been organised means that the measure relating to family trusts and private companies has been accorded the revenue, and consequently the premium property revenue appears to fall.
PREMIUM PROPERTY TAX, REVENUE
I refer the Treasurer to the decision of his Government to introduce a premium property tax, and refer specifically to page 27 of budget paper No 3, “Economic and Fiscal Outlook”. Will the Treasurer explain why the total revenue from the premium property tax is expected to decrease by about 30 per cent to $8.8 million in 2002-03, from $12.1 million estimated revenue in 2001-02? Mr RIPPER replied: I thank the Deputy Leader of the Opposition for his question. There is an interaction between two of the land tax measures. The land tax measure that denies the owner-occupier principal place of residence land tax exemption to indirect ownership structures, such as family companies and trusts, interacts with the premium property tax measure. Some premium properties are covered by the family trust and private company measure. The premium property measure comes into effect first, and therefore the interaction results in a reduction in revenue in the premium property tax arena, following the introduction of the second measure. The costings could have been attributed either way, but the way that the budget papers have been organised means that the measure relating to family trusts and private companies has been accorded the revenue, and consequently the premium property revenue appears to fall.
Mr RIPPER replied: I thank the Deputy Leader of the Opposition for his question. There is an interaction between two of the land tax measures. The land tax measure that denies the owner-occupier principal place of residence land tax exemption to indirect ownership structures, such as family companies and trusts, interacts with the premium property tax measure. Some premium properties are covered by the family trust and private company measure. The premium property measure comes into effect first, and therefore the interaction results in a reduction in revenue in the premium property tax arena, following the introduction of the second measure. The costings could have been attributed either way, but the way that the budget papers have been organised means that the measure relating to family trusts and private companies has been accorded the revenue, and consequently the premium property revenue appears to fall.
I thank the Deputy Leader of the Opposition for his question. There is an interaction between two of the land tax measures. The land tax measure that denies the owner-occupier principal place of residence land tax exemption to indirect ownership structures, such as family companies and trusts, interacts with the premium property tax measure. Some premium properties are covered by the family trust and private company measure. The premium property measure comes into effect first, and therefore the interaction results in a reduction in revenue in the premium property tax arena, following the introduction of the second measure. The costings could have been attributed either way, but the way that the budget papers have been organised means that the measure relating to family trusts and private companies has been accorded the revenue, and consequently the premium property revenue appears to fall.
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