Stamp Duty on Home Loans to be Scrapped
- Thread starter steveadl
- Start date
Anyway, would be nice but I'll believe it when I see it...
Steve, I'm with you. It needs to be abolished - it was part of the promises when the GST was introduced. It is an impediment to investing. It does not apply to other investments - such as the share market.
One of its upsides however, (I can't believe I'm finding an upside to stamp duty
) is that because it is so large an amount of money, people do not transact housing as quickly as they might shares. This has the effect of removing a lot of volatility from houses Vs shares. This IMO is a good thing.Back to the Henry review - it is just that - a review, and the govt. of the day will cherry pick the options they find politically palatable.
One of its upsides however, (I can't believe I'm finding an upside to stamp duty
I take the same view, whilst I don't enjoy paying many $k's per house, we do have the benefit of it taking 'the edge' of the market because people won't just sell on a whim as easily.
Yes, you miss out. The paper has not even begun to be considered by the govt. yet, let alone legislation being drafted, amended and passed into law.
Sanity check..............
the stamps on the loan arent much compared to the stamps on the transfer..............and most states are now close to having killed mortgage stamps anyways.
ta
rolf
the stamps on the loan arent much compared to the stamps on the transfer..............and most states are now close to having killed mortgage stamps anyways.
ta
rolf
I believe the article was all about stamp duty on land transfers, not mortgages as the article's headline suggested, I think it's merely a case of the sub-editor messing up. (incidentally, in Victoria we don't have Stamp Duty or mortgages anymore)
I actually think there's a prospect this will happen, as it'll give the states the opportunity to introduce a state-based income tax, similar to the US.
The problem for the states with stamp duty is that they have very little control over it - if the property market stalls they can't really affect the revenue raised that easily, as some states are currently experiencing.
On the other hand, if they receive x% of all income received by residents of the state, then they have a lot more control over that, and could raise more money.
Of course in America this leads to righ people living in states with low or zero state income tax - one of the reasons Florida is so popular is that it has no state income tax. Perhaps we might see some states, eg QLD/WA, use a lower income tax rate to try to attract migration?
I actually think there's a prospect this will happen, as it'll give the states the opportunity to introduce a state-based income tax, similar to the US.
The problem for the states with stamp duty is that they have very little control over it - if the property market stalls they can't really affect the revenue raised that easily, as some states are currently experiencing.
On the other hand, if they receive x% of all income received by residents of the state, then they have a lot more control over that, and could raise more money.
Of course in America this leads to righ people living in states with low or zero state income tax - one of the reasons Florida is so popular is that it has no state income tax. Perhaps we might see some states, eg QLD/WA, use a lower income tax rate to try to attract migration?
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