Savings On Land Tax Anyone? Be Quick - Changes Are Being Introduced

As the economy tightens, it is unlikely that your business is unaffected. As no one knows where the economy is heading in the foreseeable future, we all need to look for avenues to reduce expenditure.

Land tax is payable every financial year and is usually a considerable expense for developers and those with substantial land holdings.

To recap, the current situation with land tax is as follows:

• It is calculated based on the average of the relevant unimproved values (as valued by the State government) of all an entity's land holdings for the last 3 years.

• Despite valuing properties around the peak of the market in 2007, the State government refuses to revalue properties in the declining 2008 market, despite lobbying by property industry bodies. Assessments for the next few years will be affected by the higher 2007 valuations – meaning payment of a higher amount in land tax (and rates) for years to come.