Land tax is expected to rise by as much as 40 per cent in some suburbs and by an average of 25 per cent next financial year.
This is despite the announcement this week that the Follectt Government would not increase the land tax rate of 1 per cent.
Landlords were initially relieved by the announcement. They had expected it to rise to 1.25 per cent or 1.5 per cent. However, the increase in property valuations have ensured land tax would rise anyway.
Rates, on the other hand, are adjusted to take account to rises in property values.
Land tax is payable on all residential land which is not a principal residence, with exemptions for employment transfers and hardship cases.
Ordinary residential rates are expected to rise only about 5 per cent. This is because despite valuation rises the rate in the dollar was lowered from 1.149 cents to 1.019 cents.
The total valuation of residential land in the ACT has increased 26 per cent in the year.
The director the Landlord Advisory Service, Peter Jansen, said the land-tax rate should have been lowered, like the residential rate, to take account of increased valuations.
Average residential rates would go up $73 next financial year whereas land tax would go up more than four times that.