House boom reaps state property tax bonanza
'VICTORIA'S long-running property boom has helped boost State Government coffers by more than $1 billion a year since 1998. Syrocketing revenue from land tax and stamp duty have led to calls for the system to be reviewed because of bracket creep and claims it is discriminatory and discourages investment in Victoria.

'The most recent Budget forecast predicts the Government will reap $611.4 million from land tax this financial year - a 132 per cent increase from 1997-98. Meanwhile stamp duty has swelled from $981 million to a forecast $1.59 billion in the same period'

'Australian Property Institute president Barry Brakey said the land tax system in Victoria was discriminatory and often unfair. "Everyone expects that you have to pay land tax but it does not differentiate with what you are doing with the land," he said.'

This, of course, is one of the purposes and main advantages of land tax. It is a form of incentive taxation, to stimulate economic activity and prevent slums by encouraging land to be put to its highest and best use.

House boom reaps state property tax bonanza
'VICTORIA'S long-running property boom has helped boost State Government coffers by more than $1 billion a year since 1998. Syrocketing revenue from land tax and stamp duty have led to calls for the system to be reviewed because of bracket creep and claims it is discriminatory and discourages investment in Victoria.

'The most recent Budget forecast predicts the Government will reap $611.4 million from land tax this financial year - a 132 per cent increase from 1997-98. Meanwhile stamp duty has swelled from $981 million to a forecast $1.59 billion in the same period'

'Australian Property Institute president Barry Brakey said the land tax system in Victoria was discriminatory and often unfair. "Everyone expects that you have to pay land tax but it does not differentiate with what you are doing with the land," he said.'

This, of course, is one of the purposes and main advantages of land tax. It is a form of incentive taxation, to stimulate economic activity and prevent slums by encouraging land to be put to its highest and best use.