The Real Estate Institute of South Australia (REISA) has made a submission to the State Government expressing deep concerns about proposed changes to the land tax regime, which it believes would cripple the SA market.
The submission is a culmination of results of REISA’s Land Tax Member Survey and reaction by its members, who represent a broad range of property ownership.
REISA President Brett Roenfeldt said that based on the very vocal reaction from their members, the group strongly opposes the proposed aggregation reforms.
“This is truly an issue that has ignited a fire within our community and has very much affected the dreams and aspirations of mum and dad investors,” Mr Roenfeldt said.
“We would very much encourage the State Government to engage with REISA and other relevant stakeholders in discussions concerning alternative avenues of property tax reform that might serve the dual purpose of not only securing revenue but also more equitably distributing the property tax burden on real estate proprietors.”
The main points of REISA’s recommendations included:
- The State Government must not proceed with the current aggregation reforms
- The State Government must complete the Revaluation Initiative before progressing any land tax reform
- The State Government must examine the exemptions contained in the legislation to determine if the legislative intent of the purpose of land tax exemption is being fulfilled by the exempted landowner’s primary or dominant purpose of owning the land.
Mr Roenfeldt said REISA would continue to lobby strongly on behalf of its members for an end to these reforms.
“The effect on the real estate market in South Australia will be crippling and devastating,” he said.
“The inevitable outcomes of these reforms will be a state-wide devaluing of properties, a considerable increase in time on market, a massive upswing in vendor discounting, and the increasing of rent which will put undue financial and social pressure on tenants and renters.”