Treasurer Rob Lucas’ land tax reforms get support from former outspoken business group
Business SA has put forward the cost of their support for the controversial land tax reforms. But it wants certain conditions to be imposed in return for its backing.
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South Australia’s biggest business lobby will back controversial land tax reforms, but with conditions.
The move, which has been described by Treasurer Rob Lucas as a significant development, will be used to put pressure on Upper House MP John Darley, whose vote could help to see the reforms pass State Parliament.
Mr Darley was last night adamant the State Government had not done enough to earn his support.
Business SA chief executive Martin Haese, a long-term critic of the reforms, emerged from a board meeting yesterday with a list of demands in a move that the Property Council, and Mr Lucas, had hoped would be enough to get critics in the Parliament over the line.
“Business SA … wants all political parties to agree to a reduction in the land tax rate implemented in the range of between $755,000 and $1.1 million, from 1.65 per cent to 1.25 per cent,” Mr Haese said.
“We’re also calling on the Government, the Opposition and the crossbenchers to support an increased threshold from $1.6 million up to $2 million.”
Mr Lucas said he would consider Business SA’s proposed changes.
But Mr Darley said last night he would not back the changes, even if the Government agreed to them.
“The way the Government has handled this is the worst way and there is no way to recover it at this stage,” Mr Darley said.
Mr Lucas said he would meet with Mr Darley again today in a bid to convince him to back the reforms.
“He has been saying he will kill the Bill and that is ultimately his call,” Mr Lucas said.
“But we have now got two of the bigger stakeholder groups in the state – one supporting and one supporting it with changes.”
If Mr Lucas did agree to the Business SA changes it would be the fourth time the Bill has been changed since being announced in the State Budget.
Mr Darley’s opposition combined with Labor pledging to vote against the Bill means it will not get through the Upper House.