Landlords, holiday home owners and even farmers renting houses to staff will have to pay at least twice as much in fixed emergency services tax charges on these properties from July 1 next year.
But Treasurer Jaclyn Symes has revealed the government will rake in another $1.8bn in ESVF tax from July 1 next year on the back of landlords, their renters and anyone with residential property is not their principal place of residence.
The tax consists of a fixed charge, plus a variable component based on the property’s capital improved value.
However in what can only be regarded as confusing legislative drafting the Act also states: “On and after 1 July 2026, an owner of leviable land is entitled to a concession of 50 per cent of the fixed charge part of the levy amount in respect of one parcel or a portion of one parcel of leviable land that is used exclusively for residential purposes by the owner and is the owner’s principal place of residence”.
The move leaves anyone with any investment or rental property, such as mum and dad landlords, unable to claim the discount and paying $276 or more in fixed charges.
When Ms Symes was asked by Opposition Nationals MP Melina Bath what was driving next year’s July 1 tax hike to $1.8bn, the Treasurer said it was “based on the increased fixed charge for the non-principal places of residence”.