Questions without notice and ministers statements
Land tax
David LIMBRICK (South-Eastern Metropolitan) (12:07): My question is for the Treasurer. There were recent media reports, rather concerning reports, about home owners receiving land tax liability notices from the SRO despite not normally being liable for land tax. Would the Treasurer be able to confirm what the situation actually is here for property owners receiving these types of land tax assessments?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:08): I thank Mr Limbrick for his question in relation to land tax. As many people in the chamber would know, land tax has been around for some time and the settings that have been in existence for over 10 years have not changed. What have been altered recently are thresholds in relation to introducing the temporary changes for the COVID debt recovery plan. Many people that may have had properties valued at over $300,000 have been used to getting land tax notifications. Now, in relation to the changed threshold of a reduction to $50,000, that would be the vast majority of a new cohort that have been asked to contribute to this.
David LIMBRICK (South-Eastern Metropolitan) (12:09): I thank the Treasurer for that answer. But specifically this was around people who work from home or run a business from home. There was an implication in the article that the SRO was receiving some data from the ATO related to this, and these people had previously never been liable, even though they were working from home. Under what conditions does someone become liable for land tax if they are working from home? Because lots of people do it these days.
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:09): I thank Mr Limbrick for his question. To be really clear, land tax does not apply to home owners or renters merely for working from home from time to time. If you are in the office five days a week then working from home two days a week et cetera, this is not what is intended to be captured. As I said previously, the settings have not changed in relation to those who operate a substantial business from home. What has changed is the threshold. A good example of that is that if you are a mechanic and you run a business from a garage in the main street, you have always been subject to land tax. It is only fair that the same settings apply to someone who may operate the same size business outside of the garage that may be connected to their principal place of residence. That has not changed. The only thing that has changed is the thresholds.