A new tax is being advocated by The Grattan Institute - and I’m telling you right now, you’re not planning to like it!
The particular Grattan Institute, that is an independent think tank dedicated to developing high quality public policy solutions for Australia’s future, is actually proposing a brand new tax on property owners.
Aimed at raising $7 billion a year, the house ‘levy’ they are advocating for will be charged with 0.2%, or $2 per $1,000, on the unimproved price of every home in Australia.
It could be attached to your council prices valuation, and so would essentially be payable on your property value.
It’s believed that the once-a-year charge would be around $772 about the median-priced Sydney house, $560 on the median-priced Victoria home, and much less in other cities as well as regional places.
You can’t state I didn’t advise you; I said you wouldn’t like this information!
Note that this can be by no means a sure point; it’s not even technically on the table. It's got simply recently been proposed through the Grattan Institute, however they have suggested a number of taxes initiatives related to property over the years that have never come to fruition.
And on a good note, their working paper argues the levy might be used to account the decrease and final abolition of stamp 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, not to mention add extra fees and costs to the equation. But when this is a determine that paves the way for seal of approval duty being eliminated, i then think that’s a move we can perhaps get behind?
Up to you: what can you prefer? A little property garnishment charged every year? Or is a substantial upfront expense in the form of seal of approval duty a less strenuous way for you to control your property shelling out budget?
Til next time, pleased investing!
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