News Service from Weird House

NSW: Wealthy landowners to get tax hike in mini-budget

SYDNEY, Nov 7 AAP - Wealthy landowners will get slapped with a tax hike when the NSW government releases its mini-budget this month.

Premier Nathan Rees and his ministry must reduce the annual budget after a $1 billion shortfall was revealed in September.

Fairfax newspapers report the government plans to increase the tax rate forpeople owning investment property worth more than1.8 million.

Their rate would be bumped from 1.6 per cent to 2 per cent, which should raise between150 million to $200 million a year.

Those owning land worth from368,000 to $1.8 million will keep paying the 1.6 tax rate.

Fairfax understands Mr Rees insisted with his cabinet that families be favoured over well-off investors when it comes to tax increases.

AAP vpmcmc =0A