Hello Forumites,
Government will try and introduce a Levy on the sale of investment ppty's and abolish stamp duty on first home buyers. I can see an immediate benefit to first home buyers, although on the flip side investors do not only have to pay capital gains tax but also a levy??? I think this is a bit much....How else do you see that the introduction would affect investor pyschology???
Learner.
Here is the extract from The Daily Telegraph, sorry haven't become familiar on setting up the links.
""""Stamp duty win for first home buyers
April 6, 2004
STAMP duty will be abolished for almost all first home buyers in NSW under changes introduced in the NSW government's mini-Budget today.
More from our Afternoon Edition
But those seeking to sell their second homes will cop a 2.25 per cent stamp duty levy.
NSW Treasurer Michael Egan told a specially convened state parliament that the NSW government will run a deficit of approximately $300 million in 2004/05.
Mr Egan said an overheated property market was not good for the economy, the community or for young people and families battling to buy their first homes.
He said those owning a second or investment property could afford to pay a 2.25 per cent stamp duty on selling.
The duty would not apply to the sale of a person's principal place of residence and would not apply to the sale of farms, he said.
Legislation for the new duty would be introduced in May, with the levy to apply as soon as possible but no later than July 1, Mr Egan said.
The treasurer said the measures would raise $690 million a year and most of the proceeds would cover some of the $376 million lost in commonwealth grants.
As a counterweight to the 2.25 per cent stamp duty on the sale of an investment or second property, stamp duty will be abolished for almost all first home buyers.
"There will be a complete exemption for homes costing up to $500,000, with the concession phasing out between $500,000 and $600,000," Mr Egan said.
The treasurer also announced a major overhaul of the land tax system, with the land tax threshold of $317,000 being abolished.
"From July 1, the threshold will be abolished and fairer and lower rates will be introduced," Mr Egan told parliament.
The new land tax arrangement would provide businesses with a significant reduction in land tax bills, he said.
Mr Egan said the number of area health services would be reduced and their administration amalgamated to cut the cost of providing corporate services to frontline staff.
Health funding would be immediately boosted by $50 million, while the health budget for 2004/5 would rise by $572 million.
The mini-Budget contained $600 million for health capital works and an extra $241 million over the next four years for mental health.
The treasurer also announced a massive overhaul of the rail system, with an extra $300 million going towards passenger rail in 2004/05.
There also will be $1 billion worth of projects, with the existing 14 CityRail lines being separated and reconfigured into five stand-alone lines.
"These new works will create five independent lines with more reliable and frequent services and reduced congestion and delays," Mr Egan said.
Education also received a boost with the mini-Budget containing an increase of $356 million next year and a pledge to continue the government's promise to recruit more teachers and reduce class sizes.
Funding for the Department of Community Services will increase by $41 million next year, which includes money to employ more than 150 caseworkers.
The Department of Ageing Disability and Home Care will get a funding boost of nearly $88 million to expand residential accommodation.
Mr Egan said the government also would establish a new Department of Primary Industry by amalgamating the Department of Agriculture, NSW Fisheries, the Department of Mineral Resources and State Forests, to reduce expensive duplication of services.
AAP"""
Government will try and introduce a Levy on the sale of investment ppty's and abolish stamp duty on first home buyers. I can see an immediate benefit to first home buyers, although on the flip side investors do not only have to pay capital gains tax but also a levy??? I think this is a bit much....How else do you see that the introduction would affect investor pyschology???
Learner.
Here is the extract from The Daily Telegraph, sorry haven't become familiar on setting up the links.
""""Stamp duty win for first home buyers
April 6, 2004
STAMP duty will be abolished for almost all first home buyers in NSW under changes introduced in the NSW government's mini-Budget today.
More from our Afternoon Edition
But those seeking to sell their second homes will cop a 2.25 per cent stamp duty levy.
NSW Treasurer Michael Egan told a specially convened state parliament that the NSW government will run a deficit of approximately $300 million in 2004/05.
Mr Egan said an overheated property market was not good for the economy, the community or for young people and families battling to buy their first homes.
He said those owning a second or investment property could afford to pay a 2.25 per cent stamp duty on selling.
The duty would not apply to the sale of a person's principal place of residence and would not apply to the sale of farms, he said.
Legislation for the new duty would be introduced in May, with the levy to apply as soon as possible but no later than July 1, Mr Egan said.
The treasurer said the measures would raise $690 million a year and most of the proceeds would cover some of the $376 million lost in commonwealth grants.
As a counterweight to the 2.25 per cent stamp duty on the sale of an investment or second property, stamp duty will be abolished for almost all first home buyers.
"There will be a complete exemption for homes costing up to $500,000, with the concession phasing out between $500,000 and $600,000," Mr Egan said.
The treasurer also announced a major overhaul of the land tax system, with the land tax threshold of $317,000 being abolished.
"From July 1, the threshold will be abolished and fairer and lower rates will be introduced," Mr Egan told parliament.
The new land tax arrangement would provide businesses with a significant reduction in land tax bills, he said.
Mr Egan said the number of area health services would be reduced and their administration amalgamated to cut the cost of providing corporate services to frontline staff.
Health funding would be immediately boosted by $50 million, while the health budget for 2004/5 would rise by $572 million.
The mini-Budget contained $600 million for health capital works and an extra $241 million over the next four years for mental health.
The treasurer also announced a massive overhaul of the rail system, with an extra $300 million going towards passenger rail in 2004/05.
There also will be $1 billion worth of projects, with the existing 14 CityRail lines being separated and reconfigured into five stand-alone lines.
"These new works will create five independent lines with more reliable and frequent services and reduced congestion and delays," Mr Egan said.
Education also received a boost with the mini-Budget containing an increase of $356 million next year and a pledge to continue the government's promise to recruit more teachers and reduce class sizes.
Funding for the Department of Community Services will increase by $41 million next year, which includes money to employ more than 150 caseworkers.
The Department of Ageing Disability and Home Care will get a funding boost of nearly $88 million to expand residential accommodation.
Mr Egan said the government also would establish a new Department of Primary Industry by amalgamating the Department of Agriculture, NSW Fisheries, the Department of Mineral Resources and State Forests, to reduce expensive duplication of services.
AAP"""
