Land value tax

First of all, congratulations for your appointment.

Very happy that One Nation are running and are looking at the moment at the forefront in my area anyway um but look my questions about the land tax um i know for a fact uh there are families in bowen heads one particularly on the corner near a river that's paying a hundred thousand dollars a year in land tax for their holiday home now a big block admittedly but a third generation house why should that family be be punished three generations down the track for something that their great-grandfather bought for them.

Also, regarding business owners, why should they be slugs for land tax? What is One Nation going to do about that?

Well, land tax in Victoria is, I think, about the highest of any of the states, and it cuts in at the lowest level at a value of just, I think, $30,000 or $50,000.

There's not much land you can buy for less than $50,000.

There's a 10% surcharge to try and repay the COVID debt, although that's not being repaid.

So would you look at land tax?

Yeah, that's in our policy platform, absolutely.

So hopefully this time encourages the government to actually do something different, but I doubt it.

What's interesting, people hate land tax.

But economically, it makes the most sense of any tax.

It makes more sense than income tax.

Whereas if you're paying something, you've got more of an incentive to develop it.

And again, I get frustrated when I just add tax after tax after tax in Victoria.

It's like pick one, either have stamp duty or land tax.

Don't double dip here and just crucify everyone.

So that is the evidence that's most commonly cited from the United States.

There are some other examples, particularly the historical examples, which had much higher land value tax rates.

The city of Vancouver historically ran itself on LVT for a really long time.

But they eventually did away with that in modern times.

And then there are some other interesting modern examples, which is if you're really trying to prove something, you shouldn't just look for evidence for it.

And then in unforeseen circumstances, if something plays out where you're sued or something goes wrong with a business, for example, that your personal assets are separated and or your business assets, if they're you know, in different, you've got different businesses and or properties, they're also separated from each other so that there's no crossover risk.

And, you know, there's, there's other things that come into play, like, um, for example, stamp duty, um, uh, you know, land tax as well, if you're looking at a property perspective.

So

yeah,

yeah yeah go circle back again like let's talk to the people that are like well i

just know stuff in my own name so yeah so well the second part to that is the second reason somebody might look at a trust or a company structure or more likely a trust if they're going to own a property um rather than having it in their own name is if they already own property in their own name.

So there's a 600K tax free threshold for land tax in Queensland for an individual.

A trust or a company has a 350K tax free threshold in Queensland.

And the time could not be more urgent for a new party that's going to disrupt politics.

I bet those people, when they tell their friends and family they're thinking of voting opportunity, I bet someone pipes up and says, oh yeah, but have you read about the land tax? How would that work?

How would the land tax work? So I think it's important to recognise this is part of a tax reset package, and this is part of why the party was founded in the first place, is because we need to deliver a more productive and resilient economy, and we have to look at our tax settings as part of that.

The land tax is on one side, and then the citizens' income is on the other.

Yeah, I'll come to this income.

Tell me how the land tax would work.

Would farmers have to cough up money every year, for example?

Yeah.

But do you think, as Jack Inovan is intimating there, that the Tassie Devils are going to have problems getting elite players because of the lifestyle? What do you think? 133693, drive at 3w.com.au.

Also on the program today, land tax.

Now, I've probably, to be honest, I've probably dropped the ball on this.

We should have been talking about land tax and its impact a lot more on this program than what we have.

We're very busy and there have been a number of issues in Victoria that we've been covering.

But land tax...

It sends people to the wall.

It is as simple as that.

Let's have a look at the three main influences or the three main policies and what the four parties are saying about them.

So the first one is around land tax.

Now, land tax is always probably the most discussed state government policy that can have an influence on the property market.

And certainly four or five years ago when that was changed, that certainly started to to impact the market in a fairly negative way.

So just to provide some context for those that aren't aware, prior to the policy change from the then Andrews government, the state land tax threshold for land value was $300,000.

and it was then decreased down to a threshold of $50,000.

Now, what that did was increase the amount of people that owned investment properties that were subject to land tax that perhaps weren't prior to that.

And it certainly had an impact on the amount of property that was retained.