MEDIA RELEASE

NICK XENOPHON M.L.C.

INDEPENDENT NO POKIES MEMBER OF THE LEGISLATIVE COUNCILL

8 February 2005

T H E

INCREDIBLE

SHRINKING

LAND

TAX

CUT

The State Treasurer has been accused of borrowing from master conjurer David Copperfield’s bag of tricks with the land tax cuts announced yesterday.

Figures prepared by former Valuer-General and Land Tax Reform Association spokesperson, John Darley, show that the $245 million in land tax cuts over four years could be totally eliminated in less than four years with property valuation increases.

 No Pokies MLC says the land tax cuts announced yesterday are a “disappearing trick David Copperfield would be proud of, because they are based on the flawed assumption of property prices remaining static”.

 “Property prices have virtually doubled in the last four years.  Even a modest increase of 5% a year of the Valuer-General’s valuations will see the tax cut rapidly shrink over the next four years.”

 Mr Xenophon supported calls from the Association to have at the very least land tax capped to a formula linking it to CPI increases.

 Mr Xenophon said information from Mr Darley indicated a 20% rise in value would inevitably mean a much bigger spike in taxes (given the progressive tax scale) and a much faster diminution of the benefits announced.

 He also supported calls for the Association for an annual revision of the threshold and tax scales to reflect movement in property prices, both upwards and downwards.

Written and authorised by Nick Xenophon, 653 Lower North East Road, Paradise, SA 5075