Minister for Finance, Jack Chambers has said he will bring a “solution” to government party leaders before the budget on October 1, to exclude active farmland from the Residential Zoned Land Tax (RZLT).
When asked by Agriland whether the tax will not come into effect on February 1, 2025, Minister Chambers said “we are working on proposals to exclude active farmers and that’s the genesis of what the solution is at the moment”.
Last month, it emerged that the government is to defer the implementation of the tax for one year to ensure active farmland will be excluded. This followed stark concerns that a significant amount of farmland will fall within the scope of the tax.
The tax will apply at a rate of 3% of the land’s market value and is aimed at increasing housing supply by activating zoned and serviced residential development lands for housing. The RZLT was already deferred in last year’s budget.
Speaking to Agriland today (Wednesday, September 4), Minister Chambers said: “We are following up with the Attorney General on ensuring that active farmers are excluded from the Residential Zoned Land Tax.
“I expect to bring proposals on this to party leaders before the budget. Everyone in government supports tackling hoarders which was the core priority as part of the Residential Zoned Land Tax.
“The centrality of the Residential Zoned Land Tax was never to target farmers in communities across our country and that’s been a serious, unintended consequence of the tax as it is designed presently.”
Minister Chambers said he received figures in recent weeks which show that the majority of farmers who sought to remove themselves from the RZLT have not been able to do so this year.
“That is why it is something that we are trying to advance a solution on, and I know every party in government supports excluding active farmers and I will bring a solution to that in the coming weeks,” the minister added.
As recently reported by Agriland, government departments, including Minister Chambers’ Department of Finance, have failed to confirm the total amount of farmland that is currently zoned under the RZLT.