PROPOSED changes to the way commercial land is valued could have dire consequences for Gympie region mum and dad investors Member for Gympie David Gibson claims.
He said there had been uproar in business and property circles as “Labor’s sneaky new tax on land was introduced under the guise of the Valuation of Land and other Legislation Amendment Bill 2010 into the parliament”.
Mr Gibson said he was concerned local jobs and small investors’ financial security will be put at risk by proposed changes to land valuation laws.
“Industry groups estimate this bill if passed will see increases in land tax of 20 to 40 per cent across the board,” he said. “I’m worried that for local businesses and farmers, this means they will have little choice but to sack workers.
“Now we have Anna Bligh’s new tax slug on businesses - on top of the fuel tax and electricity and car registration hikes - this will put more Queenslanders on the unemployment line.”
The Bill proposes a radical change to the definition of unimproved value. This will now include: Profit and risk, leases and agreements to lease, good will and infrastructure changes
According to expert valuers this change will lead to increased unimproved values and ultimately higher land tax payments across the board.
“I’m concerned that locally we will see rents increase to cover increased taxes on land and a corresponding increase in prices to cover increased rents,” Mr Gibson said.
“While also slashing jobs, Labor’s tax increases will see massive cuts to the value of investments that working Queenslanders have made to give them financial security for their future.
“What the government doesn’t seem to realise is that most of the people with commercial property are not multinational property giants, they are the mums and dads who own a small property, are tenants of a property or are customers.
“Land is something that we all need to use in some way in our lives, so changing the law to increase taxes on land just means that everyone ends up paying the bill.”