Vic Electricity Prices to Rise Due to State Taxes

Lpowerplayed on 31/03/2023 - 15:05

Hello OzB!

Long time lurker…

Found this interesting: Energy regulator just approved pass through of land tax costs to AusNet transmission for $247.1m in 2023-24, over $55m higher than the previous year!

https://www.aer.gov.au/networks-pipelines/determinations-acc…

Land taxes to AusNet (which are passed on to consumers) have upped a lot in the last few years:
2020: $161.4m
2021: $173.6m
2022: $190.0m
2023: $247.1m (30% increase!)

Increases appear to be from taxable value and not the rate.

Is this just a quick money grab from the state government?

2022 Land Tax notice: https://www.aer.gov.au/system/files/Appendix%20A%20-%202022%…
2023 Land Tax notice: https://www.aer.gov.au/system/files/Appendix%20A%20-%202023%…

Financial Electricity

Comments

  • orangetrain on 31/03/2023 - 15:07
    +4

    Is this just a quick money grab from the state government?

    No, it's a private enterprise being treated equally vs other private companies. Do you want to pay the tax on behalf of companies instead?

    • jv on 31/03/2023 - 16:48
      +1

      Do you want to pay the tax

      Land tax is just a government con job…

      The cost is just being passed onto taxpayers regardless.

      It's not going to hurt the companies.

  • donkcat on 31/03/2023 - 15:16

    So it's 30% which is what the draft default standing offer is set to increase in Victoria, so are transmission costs just linked to the default standing offer increase?
    I thought they were calculated separately?

    • netjock on 31/03/2023 - 15:27

      Land tax is probably a small share of the cost of running the business.

      But you know if the government starts setting the pace people start taking cues.

  • freefall101 on 31/03/2023 - 15:27

    The increase isn't accounted for just in the rate increases the vic govt put through, presumably this would either be in relation to the acquisition by Brookfield or maybe even buying up land as part of the Western Renewables Link.

    Either way, it makes sense that it's included in what they're allowed to bill for. And $50m is a drop in the bucket compared to what power rates are going to go up by, that will bring in billions.

  • netjock on 31/03/2023 - 15:28

    Land tax is turning into a joke.

    But you know why the government stands back will house prices sky rocket is because they make more in stamp duty and land tax. Basically a riskless profit for these guys.

    • plmko on 31/03/2023 - 15:33

      Well prices are rising because costs are going up. So chicken or the egg?

      • netjock on 31/03/2023 - 16:31
        +1

        The problem with land tax is the land isn't sucking in more fertiliser, taking in more sun or water. It is just whatever valuer (or people) believe it is worth.

        The $250k threshold hasn't changed in god knows how long. Soon you'll be investing in a dog box $300k apartment in a building of hundreds and get a land tax bill because the postage size piece of land you have a theoretic claim over is worth more than $250k.

  • boomramada on 31/03/2023 - 15:36
    +1

    Can we have a common thread called, price rise.

  • klonky on 31/03/2023 - 16:39
    +4

    Seems to be a few of these posts popping up that seem to follow the same structure:

    "This problem exists —— isnt this the government just trying to steal our aussie way of life???"

    • Protractor on 31/03/2023 - 16:59
      +2

      Yes,there's a definite push to social engineer. Race baits, cooker threads, and politically charged threads like this. Who would 'lurk' & use this as a first discussion on Ozb?
      Seriously? How would the detail just land in their lap. Beggars belief.

  • SBOB on 31/03/2023 - 16:50
    +2

    Is this just a quick money grab from the state government?

    So government privatises essential infrastructure, and then charges them land tax in line with the rest of industry/residential, and that's just a money grab?

    We are dumb enough and short sighted enough to sell of critical infrastructure or essential services, and you also want those profit making private companies to now also not have to pay taxes.

    Some sound economic management you're proposing there.

    • EightImmortals on 31/03/2023 - 17:21

      I think you missed the point.
      OP wasn't complaining that corporation have to pay tax but that the tax costs from GOVERNMENT are simply being passed onto the already over burdened public. The company isn't paying the extra tax, we are.

      • SBOB on 31/03/2023 - 17:42
        +2

        I only missed the point if they offered an alternative.
        Which is what? dont charge them tax and assume they'll just make their services cheaper?

        Their land holding costs would be a very small portion of their operating and service supply costs anyway.

        • RockyRaccoon on 01/04/2023 - 11:29

          You arent missing the point.

          1. Government sells the infrastructure, so it can impose the land and or income tax plus any other levy that want, that way it gets money from sale and annualy gains the profit.
          2. Business then increases price, that the government couldn't do as everyone would scream, "why is govt doing this to us"
          3. Govt gets extra funds to use on pet projects (or for point 4 below) and tell everyone how great economic managers we are.
          4. Govt gets extra borrowing power because it reduces its deficits
          5. Business cuts back on extra costs like people and holds prices for a while.
          6. Prices rise because business costs rise, govt changes new govt buys back/or sets up competitor which has tax and levy advantages (eg Telstra -> NBN)
            Cycle continues.

          Govt = Lib/Lab whatever your preference

          Alternatives will tell you they will fix it all, except alternatives dont have responsibilty of end result. If they get in they then become govt and eventually play the game as well.

          Why do we accept this, because we all expect that those who want to govern will provide the magical 1+1 = 3

        • Baysew on 01/04/2023 - 11:30

          … assume they'll just make their services cheaper?

          WARNING: Don't hold your breath waiting for that.

  • Drakesy on 31/03/2023 - 16:50
    +5

    Imagine if they didn't privatise the electricity network…
    You might have a network intact that won't be about profit but more about provision of electricity.

    THANKS LIBERALS!!

    • EightImmortals on 31/03/2023 - 17:22
      +1

      And you think the other half of the government clown-show wouldn't have done the same?

      • Drakesy on 31/03/2023 - 17:23

        Um
        Yes?

        It's long been known that the liberals privatise while labor prefers to keep the government in charge of utilities.
        Just look at WA, sitting pretty with a state run energy grid largely insulated from price rises.

        • EightImmortals on 31/03/2023 - 17:33

          uh-huh, Qld Energy is still a government owned corporation as well. If non-privatisation was really a pillar of Labor policy and/or integrity why haven't they bought these assets back or nationalised them? Labor/liberal are simply 2 heads on the same snake.

          • Drakesy on 31/03/2023 - 17:39
            +2

            @EightImmortals: Because labor isnt about wasting money on buying back assets that were sold for a quick sugar hit and now wont make financial sense to buy back.

          • Iwantthebestprice on 31/03/2023 - 20:37
            +1

            @EightImmortals: Energex increased their rates by 23% this year! Get ready QLD your about to experience a rate rise like you’re never seen, regardless if your grid is privatised or not

  • donbot on 31/03/2023 - 16:55

    Land tax is a farce - the valuations they use must be from the 1800s, as reality the values are significantly higher than they are assessed.

    Yes, huge increases proportionately compared to last year, but still miles off what a 'true' valuation of land would be, and so land tax could be much worse - and thats whats scary… if they actually valued land properly, and applied the current rate - yikes.

  • Protractor on 31/03/2023 - 16:56
    +1

    Long time lurker or Lib stooge planting pre-election propaganda?

  • Protractor on 31/03/2023 - 17:14
    +1

    The Morrison/Duttons govts upcoming, ongoing and permanent AUKUS tax will last for over 100 years and represent more than this Liberal Party accusation.
    OP (staffer) and her boss are clearly having too many sleepless nights now Australia mainland is all ALP.

  • Protractor on 31/03/2023 - 18:29

    If the (brand spanking new) OP is already in the penalty box, I wonder why this thread remains live?

    • SBOB on 31/03/2023 - 18:33

      I wonder how you can end up in a penalty box after 1 undeleted post. It's impressive work :)

      • Protractor on 31/03/2023 - 18:38

        Busted behind the scenes by mods is my guess.(we will never know)
        I'm sticking with the Lib stooge definition,personally.

        If you look around Ozb, you'll see all sorts of subtle signs of what's going down on social media and online as far as social engineering. This thread was a sledge hammer version, IMO.

        Mybe they should have stuck to lurking?

        • RockyRaccoon on 01/04/2023 - 11:38

          Cuts both ways.

          Reality is that half population (give or take a few 5%) vote differently

          Subtle signs are everywhere.

          Some posters always blame Libs, others Lab, other others.

          Just because all your friends vote purple doesnt mean everyone is purple.

          I have no idea if you are Left/Right Ambivilent or AI BOT. (although your appeals to vote one way might give an indication 😀

          Its the Internet - assume nothing

  • outlander on 31/03/2023 - 18:36

    Ausnet has 800,000 customers. Assuming the costs are passed on equally, 50 million equates to a little over $60 per person

    • Protractor on 31/03/2023 - 18:38

      How does one get hold of Ausnets tax bill to post online anyway?
      If Clive Palmer (via "Christian the Innocent" ,his ever so talented suit) is successful it equates to $18K per man woman and child in Straya according to WA Premier. See if you can google the speech he made in WA Parliament (yesterday I think) Ferking farny.

  • Protractor on 31/03/2023 - 21:06

    Maybe use Lord Scomos 'go to' solution. "Shop around."
    How's that working?

    *The (smart) voter should forensically examine which govts wrote these pocket lining contracts to flog our gas reserves off (and not reserve for local use as well) , and who set up the mobile goal posts for energy providers. Its vomitous that govts say if we try to use our own gas here for ourselves, it's a sovereign risk. That's a subtle hint at which country they are being loyal to. Hint, it aint Straya.
    Try to vote accordingly.

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