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It will reduce the Capital Gains TAX on the property. So if you are on the highest tax bracket, you will half back. Until the fed government ask for their little bit back. But if lots of people are selling up in NSW and buying in Queensland, perhaps it's smart to be buying in NSW and not...

I agree- perception is an important thing. People look at the 2.25% and are calculating how much they will lose if they sell. But, that tax will be deducted form their profit for CGT- so a taxpayer on the high bracket will get taxed effectively at 1.125%. And it will not apply if you've...

And don't forget the tax on profits as well.

My reading of that wording is that you only pay the levy if you stand to make more than 12% on purchase price. If bought for $200K, sold for $223,999 no sale stamp duty. If bought for $200K, sold for $224,001, sale stamp duty about $5,000.

A bit difficult- rental levels are a function of demand and supply. Taxes may change the supply equation slightly- but it probably won't change the demand much (unless potential renters get lured by paying no stamp duty- that may be a real problem).

"Don't sell" is OK to avoid the stamp duty- but they've also changed land tax calculations. Many people with land value of IPs below $300,000 will now be liable for land tax (at 0.4%). I suspect this will also help them solve the problem of collecting. It might be a bit hard for them to...