The Victorian Liberal Party’s pledge for a $285-million land tax cut is good news for small business, the Victorian Automobile Chamber of Commerce (VACC) said today.

VACC Executive Director, David Purchase, said this would provide some relief for many of VACC’s small retail automotive industry members who have been suffering from unfair land taxes.

“It’s good to see the Liberals addressing the land tax problem,” Mr Purchase said.

“Small business simply can’t afford to have land tax linked to property values.”

Mr Purchase said while Labor had reduced land tax, and raised land tax thresholds, bracket creep needed to be abolished.

“The next State Government must disconnect land tax from property values.” he said.

“The Liberal Party’s proposal to index the scale is good policy.”

VACC has been campaigning for land tax to be capped, and for all land tax collections to be reviewed, with avenues of appeal, on a case-by-case basis, for businesses at risk.

VACC has also been calling on Government to allow small businesses to pay their land tax by instalments rather than by lump sum.

“It’s a positive sign that this is being addressed by all parties,” he said.

“The Victorian Government can’t allow a tax on land to force small businesses out of business.”