Opposition Leader Ted Baillieu with Murray Wilson.29538
By Bridget Cook
SUSAN Day Cakes, Hallam, has been hit hard with a 198 per cent increase in land tax since 2008.
The Hallam business has about 150 employees at its factory and suffered an increase in its land tax bill from $7,152 in 2008 to $21,322 in 2009.
These soaring costs are a direct result of Labor’s removal of the 50 per cent cap on land tax increases, according to the state opposition.
Murray Wilson, general manager of Susan Day Cakes, said he was astounded when he received the bill.
“I can’t go to my customers and ask for a 200 per cent increase in prices, so where does the government get off doing this?” Mr Wilson said.
Mr Wilson said that in a time like this, this increase will have a direct effect on employment.
“We are doing everything we can to ensure the longevity of this business, but with bills like this it makes it hard to invest in things like training and capital,” Mr Wilson said.
“We’ve got a very loyal staff base and we want to look after them, but it makes it very hard when the government does this to a company such as ours.”
Opposition Leader Ted Baillieu said in the middle of an economic downturn, hitting businesses with increases like this is unreasonable, unfair and unacceptable.
“The government has to recognise that when they send these bills it is going to have an effect on jobs,” Mr Baillieu said.
“For every land tax bill that’s sent, jobs are lost, and that’s the wrong thing to do at a time like this.”
This year’s land tax bills are based on 2007’s inflated property prices, yet since then Victorian property values have fallen substantially. The valuation taken during September and December quarters of 2007 was when Melbourne’s property price cycle was its peak.
