The Real Estate Institute of the ACT has objected to parts of the ACT Government’s reform of land tax.
It welcomes the change to elective quarterly payments, but objects to the way extra interest will be charged on those who so elect and the way penalty interest will be charged for late payments. The legislation does not set the rate, rather it allows the Minister to set the rate.
The general manager of the institute, Bruno Yvanovich, said yesterday (fri16oct) that tax regimes should be unambiguous and in the legislation. They should not be subject to ministerial determination.
The institute has also objected to land tax being levied when the mortgagee is in possession. (This usually happens when the owner cannot meet mortgage repayments.)
The institute says this would penalise people who are down on their luck even further because the financial institution would not absorb the tax, but pass it on so the defaulting owner would get even less money after the property was finally sold.