Reduce land tax by increasing the tax thresholds and reducing the rates being charged.
This petition had 5 supporters
People are being slugged with unfair exhorbitant land taxes, due to their properties value rising and entering into the higher taxing thresholds, the max coming in at as low as $3 million. These higher thresholds are not really set high at all, as they have been about the same for a century and have not moved much. Not even adjusted for as little as CPI.
They are such, where today an owner can pay over 100% of a properties income in land tax, which then eats into its capital gain. Most owners instead of taking action against the politicians for allowing this, they resort to selling the property, whereby they further incur a capital gains tax of 50% of the top rate of 49%. That is they are then forced to pay 24.5% in CGT.
This is wrong!! No investment should ever be subjected to 100% taxing of its return ! This is occurring due to the tax rates not being adjusted relative to returns which have dropped from 8 to 10 percents once upon a time to about 2% these days!
This problem is exacerbated these days, by the fact that entering the top threshold can easily be done now, by someone owning as little as 1 or 2 investment properties, compared to that someone owning over 20 of these same properties, as recent as only 30 years ago!. You were then, only taxed less than 45% on the return of the 20th property and much less for the return on the remaining 19. While now, for the 2nd one of those properties you are taxed over 110% of its return !!! Furthermore there is now also, the burden of the additional Capital Gain Tax that has come in since then, that makes the whole thing blatant robbery!!
Crazy! This just shows how detrimentally we have been "ripped off" all these years, and what awaits us well before the next 30 years if we don't take a stance now!
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