Any Thoughts on The Date when NSW Vendors Tax to be abolished???

[BV]

Land Tax in some other states is higher

Aside from Vendor tax this article today on Land Tax is pretty scary. A tax year after year!

And consider this comment
Real Estate Institute of NSW general manager Geoff Hunter said the State Government had become a "de facto landlord", reaping up to 20 per cent of all rent paid by a tenant in the form of land tax.
Peter 147

."[/I]

We will have to increase the rents,
This was about to happen anyway.
It is a worry for investors with a small portfolio
and for people with holiday houses.
Couples with a holiday house may have to officially split and declare
that the Mrs lives at the holiday house...
btw LAND TAX in some other states eg QLD is much higher

 

[geoffw]

Joan Searl said it came as a major shock when a $12,000 land tax bill recently landed in her letterbox.

Hmmm. She would only have been exempt from land tax previously if her land value was less than about $340,000. So if that was the case, she would be liable at .4%- $1360 pa. Not quite $12,000.

What is more likely is that she has always been liable for the tax, but did not realise it- so did not pay it. The NSW governement did not realise how many people were liable for the tax- now that they're taxing everybody, many people are now being found it. It's only good little duckies like us who were liable in many cases.

Adele Mangolini knows she is due to receive her first land tax bill but she has no idea when it will turn up or how much she will be required to pay....
As a direct consequence of the additional expense, Ms Mangolini has decided to sell the Leichhardt property.

What a good idea. You know you're going to have to pay something, but don't have a clue how much- so sell up. And incur the new sales tax. Presumably, if she has not been liable for tax before (quite possible), the maximum she would be up for is $1360pa- abot $26pw, deductible.

Maybe there's going to be a lot of motivated vendors out there

 

[kissfan]

btw LAND TAX in some other states eg QLD is much higher[/QUOTE]Hang on a minute.I thought I had all bases covered when I registered my NSW I/P for land tax. I wasn't even aware of land tax in QLD (where the majority of my I/P's are) . Do I have to register another form with the QLD Gov or what.

regards
Marty

 

[quiggles]

Good lordy almighty, marty! How have you gotten away with it??

Yes you are liable for land tax (check your API and ignore the bloke who looks like an aardavrk) on your Queensland properties.

The Office of State Revenue looks after it. Check the land tax page here.

 

[jrc]

In NSW for a while you can access your curent land value through the www.lands.nsw.gov.au online services following the links

 

[kissfan]

Good lordy almighty, marty! How have you gotten away with it??

Yes you are liable for land tax (check your API and ignore the bloke who looks like an aardavrk) on your Queensland properties.

The Office of State Revenue looks after it. Check the land tax page here.

Thanks for that Quiggles. Just had a mad dash to look up Qld rates notices but it appears all is ok (for now). Thankfully the Qld I/P's are in a combination of my wife's, mine or joint names so it looks like we'll scrape in under the threshold. Once I/we go over the threshold, will the Qld Gov notify me/wife or will I have to initiate proceedings with them??

Go the mighty aardvark.

Regards
Marty

 

[shaunwalker]

I've got a great story for you all
last friday i was having a public servants lunch in queanbeyan (nsw)
anyway as i was walking out of the resturant bob carr was walking down the street with media in tow, shaking hands etc.
he came up to me and introduced himself, and instead of giving my name i replied.
thanks for the land tax, you know i've just bumped up the rent to the tennant who's a single mum to pay for that. then i kept walking.
needless to say it wasnt on the news that night!

cheers all

shaun

 

[Kevin Hockey]

Being a Queenslander I don't know too much about the new land tax, just what I have read here. however I was talking to a mate who is the General Manager of one of our larger Sydney offices last week and he seemed to indicate he thought it was heading to abolition.

He certainly considered the tax a factor in a very slow market. His company was down to 20% of its normal turnover ( Yes down to 20%, not down 20%) at Christmas but he mentioned they had a couple of recent sales. The real estate industry in NSW would be applying a lot of pressure to the Govt regarding the Tax I'm sure, hopefully for you guys common sense will prevail sometime soon.

Kev

www.nundahrealestate.com.au

 

[quiggles]

Thanks for that Quiggles. Just had a mad dash to look up Qld rates notices but it appears all is ok (for now). Thankfully the Qld I/P's are in a combination of my wife's, mine or joint names so it looks like we'll scrape in under the threshold. Once I/we go over the threshold, will the Qld Gov notify me/wife or will I have to initiate proceedings with them??

Go the mighty aardvark.

Regards
Marty

My guess would be that Qld has its act together and may notify you when the valuations change. You'd be wise to be cautious on this one. Do you get mailed valuation notices? (I get them all the b*****y time in the ACT), but there is no lower threshold there - You own an IP and you're up for land tax, pure and simple. It's just another cost of doing business.

 

[buzzlightyear]

Be careful what you wish for

If it is true that the tax has had an impact on prices, then it would no doubt have been an influence on the RBA interest setting. If this is removed, then all other things being equal, there is a more likely chance of rates rising.

That is a guaranteed increase in costs versus a voluntary payment to the NSW government........Be careful what you wish for

(Personally i am not convinced on the commentary that tax that continues to influence property prices downward)

 

[XBenX]

Rent rise fears as investors feel the pinch
By Hannah Edwards
January 23, 2005
The Sun-Herald

"Either my home goes without something or I go without something. My tenants are moving out at the end of the month and I wanted to upgrade the home. But I can forget that now. I might have to do without a couple of outfits for winter."

Some people are just born victims

 

[DD1]

The best deals

Ok so some people have IP's in NSW, others elsewhere. Each state is grabbing at your money in different ways, land tax, stamp duty, water levies, etc all add to the colourful nature of the investing path we all take. As long as the best deals, easiest contracts and accomodating agents are north of the border(not to mention 20c/ltr cheaper petrol) I'll be heading north to a forward thinking and planning state rather than a slow and sadly reacting state like NSW.

Taxes, ok they have cut their own throats, they have also lost a lot of campaign funding for their next election efforts. Meridan Apartments boss has cut poilitical funding as it is hitting his bottom line too. This is reported to be $500mil in contributions neither party will be getting so yes it will definitely be on the election as a high priority.

Yes it was insane, but they got the whole 5% of the market being new home owners a sweetener of stamp duty exemptions, with the 95% and thats all the investors being hit hard again and again so Carr can look a little better with the renter/voters slice of the market out there. Not Happy Jan!!!(no pun there). Basically im finished and thank you for letting me vent a bit on this one.

DD1

 

[DD1]

good timing

Thanks Kissfan, we were chatting about our land tax yesterday and was wondering where to get the info from. Now al is clear and we are cool.

As we have strategically invested in either the wifes name OR mine we have sneaked under the Qld threshhold yet again, phew.

Great timing on the link.

DD1

 

[kissfan]

Thanks Kissfan, we were chatting about our land tax yesterday and was wondering where to get the info from. Now al is clear and we are cool.

As we have strategically invested in either the wifes name OR mine we have sneaked under the Qld threshhold yet again, phew.

Great timing on the link.

DD1

No probs DD1

I had a bit of a mad panic there myself for a moment.
Ain't this forum great for finding out answers.

Regards
Marty

 

[MichaelW]

Vendor tax pushing investors to other states

Guys,

Seems the property council of Australia are lobbying the NSW government to have the vendor tax abolished. Unfortunately, it seems to be falling on deaf ears at present.

Minister Refshauge is trying to paint the investors as the big fatcats who want to steal the dollars back from the first home buyers. He is basically arguing that the vendor tax income is already allocated to first home buyer exemptions, and we can't cancel one without the other. He said:

"there were 28,000 first home buyers in NSW who "loved the tax", as they had each benefited by $10,000 in exemptions on stamp duty when buying their first home."

So, it might be some time before we see some relief.

Here's the article in the SMH today...

http://www.smh.com.au/news/National/Vendor-tax-a-flop-treasurer-told/2005/02/02/1107228770286.html

Cheers,
Michael.

 

[Aceyducey]

It will hit them in the pocket come next budget.

Of course, they will need a recourse to raise an extra couple of hundred million ollars...

How will they do this?

Their strategy may well be to increase land tax, perhaps based on threshold levels like income tax so that it affects investors more than home owners.

Think about it

Cheers,

Aceyducey

 

[ocean view]

think about it

Acey ,,,,Already have,,,

It is obvious this State is incrisis.. Tax's will come in

How this gov't is broke is anyones guess???? Maybe syd 2000 is the causE??

Either way ,,,,,,,,,,WA an QLD... will get my money.. It is a joke .

They are running the biggest indepent company in the country and they are broke. !!!!

ov

 

[JoannaK]

I heard a rumour on 2GB radio this morning that the govt. is considering abolishing the vendor exit tax, but get this...they're thinking of imposing land tax on improved capital value rather than unimproved capital value!

 

[Peter 14.7]

It will hit them in the pocket come next budget.

Of course, they will need a recourse to raise an extra couple of hundred million ollars...

How will they do this?

Their strategy may well be to increase land tax, perhaps based on threshold levels like income tax so that it affects investors more than home owners.

Think about it

Cheers,

Aceyducey

YOur are probably true which is so sad.

Like the removal of NG, like the luxury car tax, like the FHO grant logic goes out the window when politics is involved.

They are all counter productive. Tax land sales so sales stop, rent goes up but rent is GST free, less developer contributions, etc..! Tax luxury cars so cars drop in under the threahold and overall less GST is caught. Even the FHO grant debate that is should not go to fat cats buying $1M homes. Take back the $16k they cry so they also dont pay the $50k in stamp duty

Even workercomp sucksin NSW. Did you know they charge worker comp on super sunce July 2004 ! So thats anywhere between 1 to 10% on the super which is 8% of wages anyhow. Tax on a levy. How does that help those wanting to put aside for super?? ANd they wonder why builders do everything less for cash Into the family trust for me so they are going to get less tax again.

I vote for the Abolish Stupid Taxes party which I hear the Feb Libs are considering. Also they Regional Goverment Party would get a run.

The fact we are only 20M spread voer adn enture continent yet we have states, local, federal and territry govs is joke.
In Japan 20M would be a city gov and thats it.

Peter 147

 

[MichaelW]

Peter,

Completely agree, our three-tier government system is massive overkill. They've been talking about rationalising either state or local governments for a while now though. I think the state governments are already acting to reduce the power of local government to ensure that its local that gets the chop. But then the federal governmant comes along and gives funds direct to the local governments, thereby bypassing state, making it clear which level of government they think is superfluous. Any which way you look at it, there's too many chiefs for the number of indians.

Since state's aren't authorised legally to levy taxes per se, they have to put in place all of these little levies and such to pay the bills and rely on tax hand-outs from the federal government. Is it little wonder states put so much money in to speed cameras and the like so that they can pay their way.

By the time we pay our income tax, goods and services tax, all the little state levies and the local council bills, I'm sure I end up with far less than half my gross income...

Cheers,
Michael.