ABC

Hip pocket pain as land tax bills soar

ABC November 4, 2009, 6:44 am
Tasmanian Premier David Bartlett.

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The Tasmanian Government has declared it is in no rush to make any changes to land tax despite the pain it is causing some businesses.

The State Opposition says Tasmania's land tax system was already unfair and recent land revaluations mean change is even more essential.

There have been land revaluations in nine municipalities, leading to major land tax increases.

Hobart motel owner David Patmore says his land tax bill has increased by 150 per cent to nearly $20,000 and it could not have come at a worse time.

"This would be our worst four months trading in the last 10 years," he said.

The Premier, David Bartlett, told Parliament the Government will wait for the national Henry tax review to be finished before considering change.

He again dismissed the Opposition's promise to abolish the tax.

"Hoax number one on the Tasmanian people," Mr Bartlett said.

The Treasurer, Michael Aird, told parliament landowners can ask the state revenue office for more time to pay.

But he says the government has already made major changes.

"We have reformed the tax system," he said.

Mr Aird agrees further changes should wait until after the national Henry tax review.

The Opposition's Peter Gutwein says the government can not afford to wait.

"That is going to cost jobs. That is going to cost businesses their livelihood," he said.

Mr Aird says the Opposition's promise to abolish land tax is a fraud.

The Greens have proposed an interim measure to cap land tax increases at 10 per cent.

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