Land tax battle enters final stages as Premier Steven Marshall prepares to introduce legislation in Parliament, vote by December

The land tax battle will be resolved “one way or the other” by the end of the year.

• SACOSS supports plan to close loophole
• Peregrine Corporation: Slash top rate of land tax to 1.5 per cent

South Australia’s long-running land tax battle will be resolved “one way or the other” by mid-December, as Treasurer Rob Lucas says community uncertainty over the policy must come to an end.

The debate enters its final phase on Tuesday, when Premier Steven Marshall introduces legislation in the Lower House.

Mr Lucas has told The Advertiser only minor technical changes have been made after a month’s consultation.

Mr Lucas is now stepping up calls for Labor to “get off the fence” and declare its hand on land tax, adding he would stick to the hard deadline.

Parliament’s last scheduled sitting day for the year is December 5, but there is an option to return the following week.

Mr Lucas said a vote must occur then, as bureaucrats needed time to prepare to roll out approved changes, and investors wanted certainty.

“Clearly, a lot of people have been unnecessarily alarmed or concerned where it won’t impact upon them. It may well be impacting their investment decisions,” Mr Lucas said.

“People ought to have it made clear to them one way or the other. December will have been six months since June (when the policy was revealed). It’s plenty of time for people to have decided if they want to support this.”

Convention says money-related Bills cannot start in the Upper House, of which Mr Lucas is a member, leaving Mr Marshall to take up the lead.

It sets up an early test of Liberal solidarity in the house of government, before Labor plays a decisive role in the Upper House, where crossbenchers are offering support to defeat the land tax change.

The Liberal party room, which has at times been deeply divided over early versions of the policy, was briefed last night on the final plan. Under Liberal conventions, MPs who are considering breaking away from colleagues to cross the floor on an issue tell the party room they “reserve the right” to do so. It is understood no MP did so in the meeting last night.

Mr Lucas said any move from the Opposition to defer a vote on the policy until next year would be considered an effective rejection, forcing him to walk away from reform.

Opposition treasury spokesman Stephen Mullighan would not put a timeline on Labor’s long-awaited decision. “Rob Lucas has taken four months to introduce their latest changes to land tax,,” he said. “Steven Marshall and Rob Lucas made a $80 million error in their estimates on the impacts of this policy so they must also now release the modelling.

“It’s a bit rich ... to demand a position from others when they’re yet to release their legislation.” The plan to go to Parliament this week closes a claimed “loophole”, which allows tax minimisation by splitting land ownership between legal structures. In exchange, the top rate of land tax would be slashed from 3.7 per cent to 2.4 per cent for portfolios valued over $1.1 million. The combined effect is an increase in Government revenue of $76 million over three years.

Mr Lucas will consider new cuts or revenue raising to cover the gap if the plan is defeated.