Tasmanian shack owners are reporting feeling the pinch of increases in their land tax payments

For some Tasmanian shack owners their slice of paradise has become a huge liability, with the yearly land tax almost doubling. They’re now calling for tax breaks to help avoid having to sell.

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FOR some Tasmanian shack owners their “slice of paradise has become a huge liability”.

Lenah Valley resident Sally Pretyman owns a beach shack at Oppossum Bay that has been in her family for 80 years.

For decades her family had little trouble affording the yearly land tax on the property but she said recent tax hikes left them wondering how they can raise the funds to hold onto their shack.

Several Tasmanian landowners like Ms Pretyman have slammed their land tax hikes in recent weeks, but the state government yesterday insisted rates haven’t increased.

Land tax in Tasmania is payable on vacant land, commercial properties, rental properties and shacks, but not on primary places of residence or farmland.

“Our shack was bought by my grandparents 80 years ago and handed down through the generations. My mum has now died and she used to love going there,” Ms Pretyman said.

“Our land tax has increased from $3337 in 2018-19 to $6670 in 2020-21.”

Ms Pretyman said she found it “unbelievable” that such an increase could occur.

“We’re hoping that we won’t be forced to sell it, but $6000 for nothing is a lot of money and we’re making no income at all on the property,” she said.

“Our slice of paradise has become a huge liability.”

David O'Byrne Labor member. Picture: NIKKI DAVIS-JONES

Labor’s Treasury spokesman David O’Byrne said land tax hikes would be a massive blow for families who have had shacks for generations and said it “will undermine a unique part of the Tasmanian way of life”.

“In 2010, [Premier] Peter Gutwein made a clear commitment as Shadow Treasurer to abolish land tax by this year but, instead, he has now slugged many Tasmanians with a massive tax hike,” Mr O’Byrne said.

“It’s a slap in the face to mum and dad investors and shackies.”

Mr Gutwein yesterday said land tax rates in Tasmania had not changed and have remained the same since 2010.

“Our economy and property market are strong, which inevitably means the market value of property valuations increase. Land tax is calculated using land market values determined by the independent Valuer-General,” he said.

“The Government has not increased any tax – in fact, we have provided waivers on commercial land where owners are experiencing hardship during the pandemic, providing land tax relief of up to $30 million this financial year.

“Anyone experiencing difficulty paying their land tax can apply to the Commissioner of State Revenue to defer lump sum payments and pay their land tax by instalments.”