"Land tax sting"

Mark Skelsey, NSW Daily Telegraph, 15 February 2005

PREMIER Bob Carr and his Treasurer Andrew Refshauge refused yesterday to make changes to the land tax system, despite evidence it was hitting among the poorest in our society.

Self-funded retirees are feeling the brunt of the Carr Government's land tax changes, under which the former $317,000 land tax free threshold has been abolished.

Mr Carr said yesterday the Government's land tax measures were being used to fund the removal of stamp duty paid by first home buyers, which has helped 30,000 purchasers over the last nine months.

"Our new measures are helping first home buyers get into the market and we are the only state to have done away with stamp duty for them," Mr Carr said.

"All our property tax reforms have made it possible for us to do this ... and I am proud of that."

Mr Carr also showed little sympathy for people who were paying big land bills due to valuations which are dated at July 1 last year, which represented the tail of the real estate boom. He said people would need to wait until the 2006 land tax mailout out to reap the benefits of this year's weaker market.

Self-funded retiree Ron Grasso, 72, of Bexley, said he had as little as $15-20 a week for groceries but had now been hit with a $460 land tax bill for his investment unit.

Last year, the NSW Government removed the tax-free threshold on properties worth up to $317,000.

Since January 1 this year, the new rates have been set at 0.4 per cent for properties with a value up to $400,000, 0.6 per cent on those worth $400,000-$500,000, and 1.4 per cent on values more than $500,000.

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