29/10/2009

NSW Government missing out on Tweed land tax revenue as investors flee across the border.

The number of Tweed properties generating Land Tax for the State Government has fallen by nearly ten per cent over the past two years despite the region’s building boom.

An answer to a written question from Tweed Nationals MP, Geoff Provest reveals that the number of Tweed properties assessed for land tax fell from 3742 in 2007 to 3598 in 2008, and just 3440 in 2009.

Total Tweed Land Tax revenue increased from $17.2 million to $20.1 million over the same period, but that is due to rising property values, according to Mr Provest.

“Property investors are fleeing across the border because Queensland has no Land Tax,” Mr Provest said.

“This not only deprives NSW of desperately needed tax revenue, but also compounds the Tweed’s already acute shortage of rental accommodation, particularly for low income earners.”

“This double whammy is yet another negative consequence of Sydney’s Labor’s failure to understand or deal with local cross border problems.”

Mr Provest called on the Government to take up the Coalition’s plan for a cross border commission.

“This could develop solutions, including making the Tweed a special economic zone with lower state taxes to reduce the leakage of investment across the border,” Mr Provest concluded.