Tax on car park spaces the thin edge of the wedge
20th Dec 12
The State Government’s decision to tax car park owners in the city area is the thin of the wedge and another cost impost to property investors, the Real Estate Institute of SA (REISA) said today.
Commenting on the State Government decision to tax car park spaces ($750 a year per park), in the mid-year 2012-2013 budget review, REISA said they were surprised that again, property seemed to be the target of taxation increases.
“Already, property taxation accounts for about a third of State Government revenue, generated from the State, so now, this will be another tax and sting for those thinking about property investment,” REISA CEO, Greg Troughton said.
“What must be remembered is that everyone pays the burden of this tax increase as investors seek to level their inputs with income and it will no doubt mean a further increase on parking charges, which have already risen considerably in recent times.”
“Today’s mid-year budget numbers show that income from the property market is down on estimates, so it seems surprising that the State Government is again taxing this area. The property sector needs to a boost, not another tax impost.”
Looking to the next State election, there is a momentum to look more broadly and the way the State generates and manages taxation and the real estate sector is very keen to engage in this debate. In late 2012, twelve industry organisations including the Property Council of Australia, Australian Institute of Conveyancers and Urban Development Institute of Australia joined together to highlight the heavy burden that the property sector bears in raising State revenue.
- 1 in 10 South Australians are employed in a property related sector
- Property is the biggest contributor to the State’s economy
- The property sector contributed a whopping $1.6b to State coffers in 2011-2012