Victoria’s housing and building sector is backing a radical overhaul of the state’s property tax regime but Daniel Andrews is tight-lipped about whether he will follow NSW’s lead. springst stampduty housing
Victoria’s housing and building sector has strongly backed a radical overhaul of the state’s property tax regime that would boost housing affordability by giving homebuyers the option of paying an annual housing tax instead of an upfront stamp duty.NSW will include a plan in next week’s state budgetNSW Premier Dominic Perrottet will switch out stamp duty in his June budget, while Victorian Premier Daniel Andrews would not confirm whether he would follow suit.
Under the NSW plan, to be announced in the June 21 state budget, the option of replacing stamp duty with an ongoing land tax will not apply to the top 20 per cent of homes by sale price to help limit the expected drop in the government’s revenue.And although past buyers would not be affected, the move to a land tax would be permanently linked to the property. That means future owners would need to pay land tax if previous owners had opted in.
“The budget’s current reliance on stamp duty ... places the eggs of Victoria’s economic bounce back in the one basket,” Kandelaars said. Property Council of Australia Victorian executive director Danni Hunter agreed that stamp duty was an inefficient, overly onerous tax that required a rethink. “Stamp duty is an incredibly inefficient tax,” she said. “It’s a barrier and a burden to many people looking to change their housing situation or get into the housing market. So it certainly is time to have the discussion about better taxes and not more of them.”
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