A new duty is being advocated by The Grattan Initiate - and I’m telling you right now, you’re not going to like it!
The Grattan Institute, which is an independent believe tank focused on developing top quality public policy solutions regarding Australia’s future, will be proposing a fresh tax on property owners.
Aimed at raising $7 billion a year, the house ‘levy’ they are suggesting for would be charged at 0.2%, or $2 per $1,000, on the unimproved worth of every residence in Australia.
It would be attached to the council rates valuation, therefore would fundamentally be due on your property value.
It’s believed that the yearly charge could be around $772 around the median-priced Sydney home, $560 on the median-priced Victoria home, and much less in other cities and regional locations.
You can’t state I didn’t alert you; We said an individual wouldn’t like this news!
Note that this is by no means any sure factor; it’s not even formally on the table. It's got simply already been proposed through the Grattan Institute, nevertheless they have offered a number of taxes initiatives related to property through the years that have never come to being.
And on a positive note, their working document argues that the levy might be used to fund the decrease and final abolition of seal of approval duties, that they describe as becoming “the most unproductive and inequitable express taxes”.
No-one likes the idea of a new home tax. It’s hard enough as an trader these days to create a 20% property deposit, not to mention add late charges and costs to the equation. However, if this is a measure that makes way for seal of approval duty being eliminated, then I think that’s moving we can possibly get behind?
Over to you: what would you prefer? A small property tax levy charged every year? Or is a large upfront expense in the form of stamps duty a simpler way for you to handle your property trading budget?
Til next time, pleased investing!
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