Probably won't publish this comment but if you feel this is a good idea, perhaps Google Noel Whittaker Land Tax and get a more balanced version!

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An annual land tax is a tax designed to eventually capture us all.

A tax designed for Govt benefit, masquerading as a benefit for first home buyers.

It would increase annually with CPI, becoming yet another cost that homeowners have no control over, such as Council Rates.

It is not likely to be a tax that would help first home buyers, as historically whenever govt grants are on offer, the market heats up and everyone, including first home buyers end up paying more, effectively negating any benefit of the original grant.

Whereas Stamp Duty is a fixed, one off and calculable cost that can be budgeted for.

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I think the land tax option will suit those who don't plan to hold on to their property for a long time. Personally, I prefer to pay the stamp duty as I tend to hold on to property for a long time and a land tax option could see me pay more than I would if paying upfront.

One aspect of this plan is the initial choice is set forever and future buyers are stuck with the original choice. I really don't like that and not sure why it's there.

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Stamp duty distorts behaviour, cripples job creation, lowers growth, and locks people into housing that might not be appropriate for their needs. To tax a minority of people each year for buying a property that better suits their needs is a ridiculous situation. Discouraging housing turnover also leads to mismatch and under utilisation of current housing stock.. The fear that these changes are about paying more tax are unfounded, if that’s they key driver it would be easier just to add couple percent to GST. These changes are well overdue to help with the major cities mobility

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How about no stamp duty and no land tax for first home buyers! The government has got more than it fair share out of the property boom.

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