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From: Paul Guest


Sorry to bring politics into this forum but GST sticks in my mind.

Prior to the introduction of GST the Federal Govt argued that Stamp Duty on property sales could be phased out over a number of years.

Now before any of you remind me, I realise that Stamp Duty is a State Govt revenue but I recall that as part of the states ramping up their revenues from the GST pie in future years, we were told by the Fed Govt. that it would allow Stamp Duty on property to be phased out.

In recent months we had the Labor Govt in Vic trying to use the potential reduction in Stamp Duty as leverage against proposed Land Tax hikes.

As much as that Bill didn't get through, the real point is that the states have got their GST revenue coming. And we have got our stamp duty abolition coming - or at least a significant reduction. It's not theirs to play with!

The Govts have done it with Stamp Duty of share transactions; phasing them out at the moment.

But cheaper turnover of property will get more people into homes and will encourage more construction and hence, more jobs.

The first home buyers grant offers valuable support to a small percentage of the population.

If the Govt wants us all to self-fund our retirement then surely they'll have to consider the barriers to wealth creation.
And self-funding doesn't come from the family home.

I suspect that this was a promise that we were meant to forget in all the kerfuffle of GST phasing in..

Any MP's out there care to comment?

An election is in the air. Let's have the Fed's put some pressure on the States.


Any comments?

PG
 
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Reply: 1
From: Glenn S


I think They should Implement a CGT rule Like the 1031 in the US So you can at least roll over the CGT into another property that would help to.

Glenn
 
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Reply: 2
From: Paul Zagoridis


I don't think removing Stamp Duty will reduce the cost of homes. SD is built into affordability calculations. It depends if banks maintain 90-95% LVR's. If they maintain those thresholds then we'll see prices rise by almost the rate of Stamp Duty.

The following comes from the dim recess of my often defective memory...

I think continuing Stamp Duty on property transactions is another thing you can thank the Democrats for. FID, BAD and Stamp duty were all slated for removal 1 July 2001 but the Democrats wanted the tax base preserved (or some such Tax the Rich! guff).

Paul Zag
Dreamspinner
Oz Film Biz is at
http://www.healey.com.au/~paulz
 
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Reply: 2.1
From: James Johnson


Didn't the stamp duty for property, at least in NSW, just rise horrendously not too long ago? I didn't realise there was a reduction planned...
Jimmy
 
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