Economy
No land tax for plantations
Anonymouse
Kim made a very interesting point too that forestry plantations don’t attract any land tax. If forestry plantation companies did have to pay then according to our present progressive land tax scale, the amount payable each year would be 2.5% of government valuation (of the land). Gunns say they own 200,000 hectares of plantation which for arguments sake might have a value of $5k per hectare at a minimum if its land that’s worth growing trees on. Their annual land tax bill would then be 5k x 200k x 2.5 / 100 = $25M
Given that the annual total land tax take for the state is $80M, that extra $25M contribution would be quite significant overall and could also help to ease the burden on the rest of us. Read more, Comment here