LOCAL investors claim a State Government decision to conduct a land tax audit during the COVID-19 pandemic is adding insult to the injury caused by the “draconian changes” to land tax – however the state treasurer says the timing was “unavoidable”.

Letters were sent out by Revenue SA seeking to clarify land ownership information following the government’s “controversial” moves to implement new tax reforms.

Eagle Foundry Bed and Breakfast co-owner Gary Iremonger said “not only have they hit us hard with additional land tax, while giving shopping centre owners big tax cuts, now all this paper work is just adding more costs when COVID-19 has had a massive negative effect on our income.”

Mr Iremonger’s wife, Leonie, echoed his sentiments, stating that the audit is “causing ordinary people a great deal of distress.”

The sudden rush of respondents to the letters allegedly caused all operations to cease, with servers buckling under the pressure of limited bandwidth.

SA Treasurer Rob Lucas told The Bunyip extra computer servers and telephone operators had been added to help support the system.

“The government recognises and we apologise in that first week (a few weeks ago) the website overloaded and couldn’t cope,” he said.

“So that first weekend we increased its capacity three-fold and the website has been coping since then.

“We have also put additional staff into the call centre and delayed the timing to get the answers back, so those who are struggling can get help or assistance.”

Member for Light Tony Piccolo said his office had received many calls from ordinary people “confused and distressed” after receiving the letters.

“The thing that I think bewilders people is just how clunky and clumsy the systems and processes that the public are expected to use,” he said.

“To compound the confusion, it’s being done in the middle of a global pandemic when a large number of property and landowners are being urged by the government to spend their time negotiating rental discounts with their tenants, whether they’re commercial shops or whether they’re residential tenants.

“The timing of this whole debacle shows that the Marshall Liberal Government is out of touch with ordinary people and the plight so many land and business owners are facing during a global pandemic.”

However, Mr Lucas said the timing was “unavoidable”.

“There is no opportunity to put it off because legislation was passed by the parliament last year, which brings into play new laws in relation to land tax for the financial year 2020/21,” he said.

“So land tax bills now have to be implemented on these new land tax laws and therefore with this information, because large numbers of people are going to be getting significant reductions in land tax, and some will be paying more, …there is no option to delay it because otherwise people who are entitled to a land tax reduction wouldn’t be getting that reduction.”

Meanwhile, Mr Lucas announced on Monday that the State Government had extended the deadline to advise Revenue SA of individual land holdings and ownership interests.

South Australians now have until July 31 (instead of June) to confirm and update their land holdings, confirm and update company group information and notify the government of land held on trust.

“Changes to land tax laws passed by the parliament late last year mean land holders now have new reporting obligations in relation to their land holdings and we want to assist companies and individuals to do that in a way that minimises worry or concern,” Mr Lucas said.

“For that reason, I have asked treasury to extend the deadline to July 31 to give investors (and, in some cases, their advisors) maximum opportunity to fill out their form, and Revenue SA enough time to collate the information in time for the introduction of $70 million in land tax cuts for 2020-21.”

For more information, visit (www.revenuesa.sa.gov.au).