Proposed changes to land tax in South Australia could have a devastating impact on property owners and the economy, the state's Property Council says.
The council has launched a public advertising campaign centred on a “fair go” for landowners, and has invited those affected by the change to contribute.
Property Council SA executive director Daniel Gannon said investors had been left frustrated by the measure, which was announced by Treasurer Rob Lucas in the June state budget.
“These changes will trigger a land tax tidal wave across the South Australian property sector, which will hurt ‘mum and dad’ and institutional investors alike,” he said on Monday.
“All we want is a fair go with tax settings in South Australia, which is why we’re taking up the fight to the state government’s recently announced changes to land tax aggregation.”
But Mr Lucas said the reform was designed to close an unfair tax loophole that allows property investors to pay less tax.
Under the current system, Mr Lucas said, some owners were setting up complex ownership structures designed to minimise the tax they must pay.
“We don’t think that’s fair and we will be introducing a model that works well interstate,” he said.