How long until Vendor Duty is axed ?

[NIF]

I believe that eventually the brilliant (ha ha) economists at NSW Treasury will work out that the vendor duty reduces the amount of revenue the government collects by reducing the number of sales (and hence stamp duty). And after considerable red tape & political maneuvreing it will be repealed.

Anyone agree, and if so how long do you think it will be ?

 

[agent007]

Anyone agree, and if so how long do you think it will be ?

I hope it stays as long as possible IMHO this helps to keep prices stable.
Investors don't buy as much IPs as they potentially could since they don't want to be subject to the vendors tax. Developers slow down since there are not many buyers as before while at the same time property investors don't discharge as much properties as otherwise they could just to avoid the extra tax. Hence, property market doesn't bust.

I reckon the NSW government is doing the right thing though for the wrong reason

Cheers,

James.

 

[JoannaK]

I agree that it will be dumped....eventually. Not until Carr is booted and the Liberals take over though. Michael Egan's ego is way too big to allow a backflip on his watch i think.

It has been a spectacular failure.

 

[Jacque]

Are you kidding? It's a state introduced tax. It's here to stay, I reckon

I'd be happy to eat my words, however, but believe pigs will fly before it's abolished.

 

[Aceyducey]

I'd be happy to eat my words, however, but believe pigs will fly before it's abolished.

Pig wings: http://www.tca.uwa.edu.au/pig/pig_project.html

I reckon that a reversal will occur, stamp duty revenues are well down & will be seriously impacting the next NSW budget.

As this tax was expected to raise stamp duty revenues it can be clearly portrayed as a failure.

However, the longer it stays in place, the better for long-term property investors

Cheers,

Aceyducey

PS: If you don't like flying pigs, try GloFish (http://www.glofish.com/)

 

[geoffw]

One effect- it may be possible to get a slight price drop in some circumstances.

One person I know who is selling a property- the tax is only payable if the profit exceeds a certain percentage (12%? not sure). He would have expected 13%- so if he drops his price to only earn 12% profit, he does not pay the 2.25% tax.