A new tax is being recommended by The Grattan Start - and I’m telling you today, you’re not going to like it!
The particular Grattan Institute, that is an independent think tank dedicated to developing top quality public policy solutions for Australia’s future, is actually proposing a fresh tax on property owners.
Targeted at raising $7 billion a year, the house ‘levy’ they are promoting for will be charged with 0.2%, or $2 per $1,000, on the unimproved value of every house in Australia.
It would be attached to your council charges valuation, and so would basically be payable on your property value.
It’s believed that the annual charge could be around $772 about the median-priced Sydney residence, $560 on the median-priced Sydney home, and much less in other cities as well as regional places.
You can’t point out I didn’t advise you; I said you wouldn’t like this media!
Note that this can be by no means the sure point; it’s not even technically on the table. It has simply recently been proposed through the Grattan Institute, nevertheless they have offered a number of taxes initiatives regarding property over the years that have by no means come to fruition.
And on a positive note, their working paper argues the levy could possibly be used to finance the decrease and eventual abolition of seal of approval duties, which they describe as getting “the most ineffective and inequitable condition taxes”.
No-one likes the concept of a new home tax. It’s with enough contentration as an trader these days to create a 20% home deposit, aside from add extra fees and costs to the equation. However, if this is a determine that paves the way for stamps duty to be eliminated, i quickly think that’s a move we can perhaps get behind?
Up to you: what can you prefer? A tiny property garnishment charged every year? Or is a substantial upfront cost in the form of stamps duty a less strenuous way for you to manage your property shelling out budget?
Til next time, pleased investing!
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