Mr. Trenorden questions the Treasurer about significant land tax increases affecting businesses in the Busselton-Margaret River area due to increased land valuations. The Treasurer deflects blame, attributing the increases to existing legislation and suggesting appeals.

AnsweredQoN 420Legislative Assembly
Asked
16 October 2001
Portfolio
Treasurer

QuestionView source ↗

LAND TAX INCREASES, BUSSELTON-MARGARET RIVER AREA
I refer to the increases in land tax of between 100 per cent and 300 per cent for businesses in the Busselton-Margaret River area, including caravan parks and other tourism facilities used by ordinary families. (1) Was the Treasurer aware of the enormous increases in the Valuer General’s valuation of land in this area when he framed the revised land tax scales? (2) Does the Treasurer agree that many businesses will be pushed into the new increased land tax brackets as a result of these increased valuations? (3) If so, will the Treasurer revise the new land tax scales? Mr RIPPER

AnswerView source ↗

(1)-(3) The increases in valuations and the consequent land tax increases in the Busselton area relate to the existing land tax legislation. Indeed, they relate to the coalition’s land tax scheme. Nothing has been passed by this Parliament with regard to land tax as a result of the Gallop Government’s state budget. What is happening is that businesses are receiving their land tax assessment for this financial year based on the existing legislation. What is happening with that existing legislation is what has happened over many years; namely, there are increases in valuation, and those increases in valuation are not uniform; therefore, in some areas the valuation increases will be higher than they are in other areas. I am advised that the Valuer General has indicated that his officers’ valuation of unimproved land with a tourism development rating has increased substantially. This reflects a catch-up component, because last year’s valuation was considered to be conservative, and it also reflects evidence from recent property sales. If the owners of that land consider that the Valuer General’s valuation is wrong, they have the capacity under existing mechanisms to appeal that valuation, and I hope they will take that opportunity. With regard to whether the proposed changes to the land tax scale will impact on the valuations and the amount of tax paid, that will depend on the valuation. Fifty-two thousand taxpayers will no longer pay land tax as a result of the restructuring of the land tax scale. Most of those people will be owners of land in the country. The increases in the scale apply to land valued at between $2 million and $5 million, and to land valued at more than $5 million. We will need to look at the particular cases - of course I am not given access as a minister to the individual circumstances of taxpayers - to determine whether the new scales will impact on particular Busselton landowners.
(1) Was the Treasurer aware of the enormous increases in the Valuer General’s valuation of land in this area when he framed the revised land tax scales? (2) Does the Treasurer agree that many businesses will be pushed into the new increased land tax brackets as a result of these increased valuations? (3) If so, will the Treasurer revise the new land tax scales? Mr RIPPER replied: (1)-(3) The increases in valuations and the consequent land tax increases in the Busselton area relate to the existing land tax legislation. Indeed, they relate to the coalition’s land tax scheme. Nothing has been passed by this Parliament with regard to land tax as a result of the Gallop Government’s state budget. What is happening is that businesses are receiving their land tax assessment for this financial year based on the existing legislation. What is happening with that existing legislation is what has happened over many years; namely, there are increases in valuation, and those increases in valuation are not uniform; therefore, in some areas the valuation increases will be higher than they are in other areas. I am advised that the Valuer General has indicated that his officers’ valuation of unimproved land with a tourism development rating has increased substantially. This reflects a catch-up component, because last year’s valuation was considered to be conservative, and it also reflects evidence from recent property sales. If the owners of that land consider that the Valuer General’s valuation is wrong, they have the capacity under existing mechanisms to appeal that valuation, and I hope they will take that opportunity. With regard to whether the proposed changes to the land tax scale will impact on the valuations and the amount of tax paid, that will depend on the valuation. Fifty-two thousand taxpayers will no longer pay land tax as a result of the restructuring of the land tax scale. Most of those people will be owners of land in the country. The increases in the scale apply to land valued at between $2 million and $5 million, and to land valued at more than $5 million. We will need to look at the particular cases - of course I am not given access as a minister to the individual circumstances of taxpayers - to determine whether the new scales will impact on particular Busselton landowners.
(2) Does the Treasurer agree that many businesses will be pushed into the new increased land tax brackets as a result of these increased valuations? (3) If so, will the Treasurer revise the new land tax scales? Mr RIPPER replied: (1)-(3) The increases in valuations and the consequent land tax increases in the Busselton area relate to the existing land tax legislation. Indeed, they relate to the coalition’s land tax scheme. Nothing has been passed by this Parliament with regard to land tax as a result of the Gallop Government’s state budget. What is happening is that businesses are receiving their land tax assessment for this financial year based on the existing legislation. What is happening with that existing legislation is what has happened over many years; namely, there are increases in valuation, and those increases in valuation are not uniform; therefore, in some areas the valuation increases will be higher than they are in other areas. I am advised that the Valuer General has indicated that his officers’ valuation of unimproved land with a tourism development rating has increased substantially. This reflects a catch-up component, because last year’s valuation was considered to be conservative, and it also reflects evidence from recent property sales. If the owners of that land consider that the Valuer General’s valuation is wrong, they have the capacity under existing mechanisms to appeal that valuation, and I hope they will take that opportunity. With regard to whether the proposed changes to the land tax scale will impact on the valuations and the amount of tax paid, that will depend on the valuation. Fifty-two thousand taxpayers will no longer pay land tax as a result of the restructuring of the land tax scale. Most of those people will be owners of land in the country. The increases in the scale apply to land valued at between $2 million and $5 million, and to land valued at more than $5 million. We will need to look at the particular cases - of course I am not given access as a minister to the individual circumstances of taxpayers - to determine whether the new scales will impact on particular Busselton landowners.
(3) If so, will the Treasurer revise the new land tax scales? Mr RIPPER replied: (1)-(3) The increases in valuations and the consequent land tax increases in the Busselton area relate to the existing land tax legislation. Indeed, they relate to the coalition’s land tax scheme. Nothing has been passed by this Parliament with regard to land tax as a result of the Gallop Government’s state budget. What is happening is that businesses are receiving their land tax assessment for this financial year based on the existing legislation. What is happening with that existing legislation is what has happened over many years; namely, there are increases in valuation, and those increases in valuation are not uniform; therefore, in some areas the valuation increases will be higher than they are in other areas. I am advised that the Valuer General has indicated that his officers’ valuation of unimproved land with a tourism development rating has increased substantially. This reflects a catch-up component, because last year’s valuation was considered to be conservative, and it also reflects evidence from recent property sales. If the owners of that land consider that the Valuer General’s valuation is wrong, they have the capacity under existing mechanisms to appeal that valuation, and I hope they will take that opportunity. With regard to whether the proposed changes to the land tax scale will impact on the valuations and the amount of tax paid, that will depend on the valuation. Fifty-two thousand taxpayers will no longer pay land tax as a result of the restructuring of the land tax scale. Most of those people will be owners of land in the country. The increases in the scale apply to land valued at between $2 million and $5 million, and to land valued at more than $5 million. We will need to look at the particular cases - of course I am not given access as a minister to the individual circumstances of taxpayers - to determine whether the new scales will impact on particular Busselton landowners.
Mr RIPPER replied: (1)-(3) The increases in valuations and the consequent land tax increases in the Busselton area relate to the existing land tax legislation. Indeed, they relate to the coalition’s land tax scheme. Nothing has been passed by this Parliament with regard to land tax as a result of the Gallop Government’s state budget. What is happening is that businesses are receiving their land tax assessment for this financial year based on the existing legislation. What is happening with that existing legislation is what has happened over many years; namely, there are increases in valuation, and those increases in valuation are not uniform; therefore, in some areas the valuation increases will be higher than they are in other areas. I am advised that the Valuer General has indicated that his officers’ valuation of unimproved land with a tourism development rating has increased substantially. This reflects a catch-up component, because last year’s valuation was considered to be conservative, and it also reflects evidence from recent property sales. If the owners of that land consider that the Valuer General’s valuation is wrong, they have the capacity under existing mechanisms to appeal that valuation, and I hope they will take that opportunity. With regard to whether the proposed changes to the land tax scale will impact on the valuations and the amount of tax paid, that will depend on the valuation. Fifty-two thousand taxpayers will no longer pay land tax as a result of the restructuring of the land tax scale. Most of those people will be owners of land in the country. The increases in the scale apply to land valued at between $2 million and $5 million, and to land valued at more than $5 million. We will need to look at the particular cases - of course I am not given access as a minister to the individual circumstances of taxpayers - to determine whether the new scales will impact on particular Busselton landowners.
(1)-(3) The increases in valuations and the consequent land tax increases in the Busselton area relate to the existing land tax legislation. Indeed, they relate to the coalition’s land tax scheme. Nothing has been passed by this Parliament with regard to land tax as a result of the Gallop Government’s state budget. What is happening is that businesses are receiving their land tax assessment for this financial year based on the existing legislation. What is happening with that existing legislation is what has happened over many years; namely, there are increases in valuation, and those increases in valuation are not uniform; therefore, in some areas the valuation increases will be higher than they are in other areas. I am advised that the Valuer General has indicated that his officers’ valuation of unimproved land with a tourism development rating has increased substantially. This reflects a catch-up component, because last year’s valuation was considered to be conservative, and it also reflects evidence from recent property sales. If the owners of that land consider that the Valuer General’s valuation is wrong, they have the capacity under existing mechanisms to appeal that valuation, and I hope they will take that opportunity. With regard to whether the proposed changes to the land tax scale will impact on the valuations and the amount of tax paid, that will depend on the valuation. Fifty-two thousand taxpayers will no longer pay land tax as a result of the restructuring of the land tax scale. Most of those people will be owners of land in the country. The increases in the scale apply to land valued at between $2 million and $5 million, and to land valued at more than $5 million. We will need to look at the particular cases - of course I am not given access as a minister to the individual circumstances of taxpayers - to determine whether the new scales will impact on particular Busselton landowners.

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