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It's occured to me that this might make it easier to wrap properties. Most wrapees are first home owners thus stamp duty is never an issue for them. By timing your wraps you avoid the land tax and you simply factor in the extra 2.25% into your sales cost.

The land tax rates are (I think): 0 - 400,000 x 0.4% 400,000 - 500,000 x 0.6% 500,000+ x 1.4% Keep in mind that it the cumulative value of a properties land component. If you have several trusts with less than $400,000 of land value each, you'll never have to pay more than 0.4% land tax...

If I were buying under these conditions, I'd be trying to do this. If I were selling an IP, not a chance because I wouldn't want to pay the extra tax... JumJones, you're absolutly right. For those who are serious about what they're doing, they'll roll with it and turn it to their advantage...

A stamp duty saving for a first home owner means that they have more money. If they're borrowing 90%, this can potentially push their buying power up by 10 times the saving. As a precedent, the first home owners grant cost the first home owner a lot more than what it saved them. At the end...

My read on this is that there would be fewer sales. If it costs you more to sell, you will delay selling (if you can) or simply not sell at all. This could push up prices and may push up rents to compensate.