So finally liberal government in NSW introducing land tax similar to the United States of America and replacing one-off stamp duty with yearly tax that one has to pay until they own the property in addition to council and all other tax. This will also have major impact on those living on rent as the extra cost will be passed on to the tenant by the landlord.
Without going to the election they are introducing such a massive change is nothing but betraying the trust of people who voted for them..! Also, note that Mr Murdoch and lot of other people like him with vested interest support American property tax system and hence over coming days you will see many articles on radio, news and media in favour of the lifelong property tax system.
Yes, land tax is low upfront but the individual will end up paying way more than stamp duty over the life of property ownership as the land tax will increase every year once introduced, similar to what they have in the US.
This land tax will increase every year similar to increase in your medical insurance or increase in council rates which is always higher than CPI but your wage increase will always be lower than CPI.
Liberal wants to make sure that working-class people remain poor and rich remains rich.
Instead of taking it to the election, they are taking it to a consultation where all opinion will be reviewed by highly paid liberal mates who runs PR services and do community consultation business. They will pick and choose which feedback they publish and the outcome will be manipulated to make people believe there is massive support from the community…😎
Ozbargain community let’s vote and see what is a real bargain… a lifelong tax for your future generations or pay a one-off and never pay again stamp duty 🙂
Please make sure you provide feedback to your local Labor, Green and Independent MP to oppose this American system.
Liberal sees this as opportunity to make future changes to our health system to education system. If this passes through then you will see liberal after next election may introduce a system with option either opt to remove Medicare and save on Medicare levy …or pay high Medicare levy to get free Medicare….and slowly Medicare will be out of Australia..!
Update thanks to Mindsetraveller
This land tax means Investor can purchase a property without needing to pay stamp duty up front, 1,000's of other investors would feel the same; appetite for property increases whilst supply remains stable which only means prices go up.
As an investor, now that I know capital growth is likely, plus with low entry cost (no stamp duty upfront), rental income (might increase it $20 or so a week to help offset my yearly land tax), tax (negative gearing) considerations is good for me.
Those young and less wealthy purchasers who find it hard now - will likely find it more harder."
In addition Yearly tax means those young with poor income will now have to allow for extra expenses for the tax that means less shopping or holiday or spend on other activities which will have direct impact on businesses and hence deeper impact on socio-economic of entire system.
The winner of this new tax system is wealthy, property investor and real-estate agent !
External links
Please sign & share petition https://www.change.org/p/gladys-berejiklian-stop-nsw-liberal…
Its the mising (probably deliberate) information by the OP in their presentation of this proposal.
And in very simple terms, you do the math based on how long you plan to own the property.
If its short - like 3-4 years its a no brainer pay the yearly tax.
If its long - like 20-30 years, pay up front.
Years in between will depend on the actual rates being charged when the options are offered, which at the earliest would be after March 2021 (and probably not through implementation until later in the year)