The tax will continue past the repayment of the stamp duty, and will likely spill over to all properties as soon as acceptable by the electorate.

Good deal for treasury, bad for consumers in the long term.

Adding people is the cause, a pause is the (longer term) solution.

Reply to article

For original story, Click Here.

One of the many problems of stamp duty is government greed. The 4% rate at one time was for ultra high end property. Price creep has pushed everyone's property into this bracket and governments were overjoyed at the cash cow that was created.

Land tax is like paying rent - it wont end when you stop working.

Retirees are being encouraged to downsize their homes but their reward may endless land tax.

You cite the ACT as an example of land tax. Having lived and worked there, you pay stamp duty when you buy and land tax if you rent the property out.

Stamp duty in ACT on $1.0M home is about $36K if land value is $500K and I rent it out I will pay about $5K per year land tax. Comparing this to other states, I don't see any bargains being offered by ACT Revenue Office.

Paying a land tax in lieu of stamp duty will cost the owner more in the long run and may put upward pressure on rental prices as owners try to cover the cost.

Its simple arithmetic, will ten years of land tax be less than the stamp duty?

Be careful what you wish for.

Reply to article

For original story, Click Here.