Two weeks ago, Victoria abolished Stamp Duty for first home buyers purchasing a property valued below $600,000.00. What are we doing in Queensland? And, what’s the overall outlook across Australia?
Plenty of commentary circulating in the last couple of months about taxation in Australia, both at Federal and State Government levels. Often media reports have linked tax with housing affordability. This has become highly political. For example, Greens leader Richard Di Natale says that the prospect of property ownership has turned into a nightmare for many young people. “Together with capital gains and negative gearing reforms, swapping stamp duty for a broad-based land tax would fix the broken system and make it easier for young people to live the Australian dream,” he says. There appears to be a move in that direction, which follows meeting in December between the Federal Treasurer Scott Morrison and State Treasurers in which the push for the States to Transition to a land tax was discussed.
In New South Wales, the Government provides concessions on stamp duty for new properties under $650,000.00. However, with a median house price of more than $1 million few are sold below that price.
Tax is likely to be a hot topic of debate when Federal Parliament resumes this week.
MBA Lawyers will continue to monitor this important matter.
By Mitchell Clark, MBA Partner.