01 February 2013
The NSW Government inquiry into the Land Valuation System must ensure that rezoned greenfield land for housing does not become excessively burdened by land tax that makes development unviable, says the Urban Taskforce.
“A number of members of the Urban Taskforce have been hit by massive land tax bills because they have begun some minor improvements on a small percentage of their large sites,” says Urban Taskforce CEO, Chris Johnson. These large housing developments can take decades to develop but the imposition of land tax across the whole of a site is simply adding costs to the production of housing and therefore slowing down supply.”
“Many greenfield sites are used for farming after rezoning for housing while a small portion of the site may be developed for the first stage. To hit the whole site with excessive land tax sends a government signal that it is better to not develop the land for housing.”
“Most parts of government are actively encouraging housing supply but the Office of State Revenue seems to be focussed on taxing the very land that could be developed for new housing.
“It is essential that the Joint Standing Committee inquiring into the Land Valuation System investigates the negative impact on housing supply that is coming from the aggressive interpretation of the dominant use of land as it transfers from agricultural use to housing over many years. While supporting agricultural use is admirable it would seem to be equally important to support new houses for families across the state.”
“Our concern is that the land tax issue related to greenfield development has got lost between three or four different Ministers. The Inquiry into the Land Valuation System is the closest we have come to a response but it is essential that the issue is clearly within the committee’s terms of reference.
“The Urban Taskforce calls on the NSW Government to make it clear that the current inquiry will review whether the existing Land Valuation System actively supports new greenfield housing or is a burden on future supply.
