I posted the following late last year that illustrates just how unfair land tax is here in SA:
Land tax rates in SA from Revenue SA web site: Total Taxable Site Value Rate Up to $110, 000 Nil $110,001 - $350,000 $0.30 for every $100 or fractional part of $100 over $110,000 $350,001 - $550,000 $720 plus $0.70 for every $100 or fractional part of $100 over $350,000 $550,001 - $750,000 $2,120 plus $1.65 for every $100 or fractional part of $100 over $550,000 $750,001 - $1,000,000 $5,420 plus $2.40 for every $100 or fractional part of $100 over $750,000 Over $1,000,000 $11,420 plus $3.70 for every $100 or fractional part of $100 over $1,000,000
Now assume investment properties with $100000 land value Assume each property earnings p/a from rent = $13000
Number of properties
Land Tax Payable
Land Tax Payable per property
% of land tax per property
% of income payable to land tax per property
1
$0.00
$0.00
0.00%
0.00%
2
$270.00
$135.00
0.14%
1.04%
3
$570.00
$190.00
0.19%
1.46%
4
$1,070.00
$267.50
0.27%
2.06%
5
$1,770.00
$354.00
0.35%
2.72%
6
$2,945.00
$490.83
0.49%
3.78%
7
$4,595.00
$656.43
0.66%
5.05%
8
$6,620.00
$827.50
0.83%
6.37%
9
$9,020.00
$1,002.22
1.00%
7.71%
10
$11,420.00
$1,142.00
1.14%
8.79%
11
$15,120.00
$1,347.54
1.35%
10.37%
15
$29,920.00
$1,994.67
2.00%
15.34%
20
$48,420.00
$2,421.00
2.42%
18.62%
50
$159,420.00
$3,188.40
3.19%
24.53%
100
$344,420.00
$3,444.20
3.44%
26.49%
500
$1,824,420.00
$3,648.84
3.65%
28.07%
1000
$3,674,420.00
$3,674.42
3.67%
28.27%
As I stated last year how is it even remotely justifiable to be paying in the order of 28% of your income to land tax just because you have accumulated properties with a large land value. It is not like you get any more services than a person that only owns a couple of properties.
With ridiculous rates like this is it any wonder why we set up trusts to reduce the liability - if it wasn't so unfair we wouldn't have to do that.
