POANSW meets Liberal Party - Land Tax Indexing Update

The Minns Government announced in July 2024 plans to freeze land tax thresholds, making it one of the most significant threats to "mum and dad" investors in recent history. By halting indexation at $1.075m, the government has created a "stealth tax" that will see your liabilities skyrocket as property values naturally rise.

You can read more about the plans in this media article

Independent industry body POANSW isn't prepared to accept this decision. They are taking your objections directly to the decision makers.

 

The reality: A 108% tax hike?

Our internal modelling reveals a sobering reality of ‘bracket creep’: the removal of CPI indexation could result in a 108% increase in your land tax bill over the next five years. This policy doesn't just hurt your pocket; it impacts rental yields and forces costs onto tenants, further strangling an already tight housing market.

 

POANSW is advocating for you

On 9 March 2026, your POANSW committee - represented by John Gilmovich, James Ruben, and Peter Dormia - presented a critical briefing to The Hon. Anthony Roberts, MP, at the Lane Cove State Electorate Conference.

POANSW highlighted how this 'stealth tax' is placing unsustainable pressure on providers, which will inevitably flow through to rental availability and pricing. 

 

Their "Micro-Supplier" Solution

POANSW is currently lobbying for two immediate changes to level the playing field:

  1. Expand Build-to-Rent Concessions: Currently, big developers get huge land tax breaks for 50+ unit builds. We are demanding these same concessions for "micro-suppliers" (mum and dad investors) to boost supply.
  2. Long-Term Rental Exemptions: We proposed a land tax exemption for owners who voluntarily commit their properties to the long-term rental market, ensuring a permanent "arsenal" of housing stock for NSW.

Land tax is insidious, because (with the threshold frozen) the tax will increase at a higher rate than rents, decimating yields and property owners that can supply rentals.

Renters and commercial businesses (retail lessees) will bear the brunt of the freezing of land tax with higher rents, outgoings and lesser supply.

POANSW flies the flag for private property owners and investors, but their voice is stronger when it’s louder. They need every property owner in NSW to stand with them to ensure the government understands the value of the private rental sector.

Click here to make sure that your voice is heard as a member of POANSW.

  

Summary of Main Talking Points

The key things that were discussed included:

  • Introduction to the current property market and challenges facing property owners, in order to provide context for the discussion about property tax.
  • POANSW made it clear that the solutions to the current challenges in the property market have been discussed at length in public forums are well known. They revolve around increasing supply, reducing property taxes, reforming the planning system and incentivising investment.
  • POANSW made it clear that there was significant disappointment on our part due to 30 years of poor property policy from successive governments in this state.
  • We highlighted that the main challenge is that all sides of politics continue to frame the discussion around property tax as a class battle rather than looking for proper solutions that would benefit all market participants.
  • POANSW explained that the freezing of the tax free threshold is another example of poor policy that will further damage the market, disincentivise investment into the residential property sector and alienate current property owners.
  • We shared the modelling that we have undertaken that demonstrates the significant growth in land tax that can be expected year on year over the coming decade, based upon the recent changes.
  • We pressed the point that this property tax structure is a disincentive to continued investment in residential property.
  • We challenged the Liberal Party (including the MP that was present) to frame the problem as a market challenge that can be remedied going forward, as opposed to devolving into class warfare and populist policies that will worsen the current challenges faced in the housing market.