Axe Stamp Duty

Discussion in 'Accounting & Tax' started by Beano, 21st Oct, 2019.

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  1. Beano

    Beano Well-Known Member

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    Take advantage of the one in 60 year alignment of State and Federal political cycle see "the Australian" 21 October 2019
    We may all live to see the end of
    Stamp Duty
    Land Tax
    CG tax
    And Max 33pc like NZ
    (And win the Rugby World Cup too)
     

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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    My first thought was I had better buy some axes before the new duty comes into effect.
     
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  3. Gen-Y

    Gen-Y Well-Known Member

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    Is this April's fool day? o_O
     
  4. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Wouldnt raise a lot of $$$ to impose duty on axes ;)

    More chance of a 25% GST than stamp duty being abolished for a broader based tax and the odds of that are about 1 in a trillion. I just read "Perrottet"....He makes marginally as much sense as the school hater Piccolli. Both should be banned from making media comments.
     
    Last edited: 21st Oct, 2019
  5. Rex

    Rex Well-Known Member

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    If I recall correctly, the current 10% GST was supposed to replace the need for state stamp duties....

    EDIT: But it's absolutely true that the Federal-State fiscal relationship is completely broken. The size of the vertical fiscal imbalance is absurd. However, Commonwealth governments quite like being able to dole out money to the states with strings attached, and they are in no hurry to give this up.
     
    Last edited: 21st Oct, 2019
  6. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    GST was never announced to be a replacement for property transfer duty. You may be confusing FID and BAD taxes as well as duty on mortgages and duty on unlisted securities. This last form of duty was last to go in most states with NSW doing this most recently.

    There are many reasons why a broader based tax is not desirable to make transfer taxes on property lower. The most obvious is flipping since duty acts as disincentive to purchase decisions but when it comes to speculation this is arguably a good thing. First Home Concessions have been used to assist the lower end of the market gain access to a first home and is often means tested as well through use of property values at a cap.
     
  7. Ross Forrester

    Ross Forrester Perth business advisor and founder

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    NSW proposal for a federal tax overhaul.

    I guess federal gets a lot of proposals.

    If Sco Mo proposed this I would be interested.
     
  8. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The issue is a constitutional one too. Meeting of all states would need to agree and then all would need to back a constitutional reform for GST and then all voters would need to approve it.....then it might get up. ScoMo would be like Boris if he mentioned it.

    Replacing rates with a broad based land tax would be far easier and just as unpalatable to a certain % of voters. Imagine telling all the oldies on pensions their rates are going up. Or GST is. Or any other tax.

    This sounds like a shorten style policy brainfart
     
  9. ChrisP73

    ChrisP73 Well-Known Member

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    Each state could replace transfer duties with sales tax like many US states
     
  10. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Not under the constitution we have. Sales tax was abolished with GST but remains a Commonwealth tax. Its not a state power.

    s51(ii)
     
    Last edited: 21st Oct, 2019
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  11. ChrisP73

    ChrisP73 Well-Known Member

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    Well then, states will never give up their revenue base to the feds.
     
  12. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    States receive most income from the Commonwealth. Its the puppet. Land tax, duties, income from services and taxes on land (rates, dev) are what they have left. States could ask the Commonwealth to introduce sales tax but that would be regressive to bring it back. A higher rate of GST or a broader base for GST are more possible. But it has elements of harm too....Will impact the lower earners more than wealthy. So then the govt has to adjust pensions and so on.
     

The shift to the regions has been quite profound with Millennials and Gen X leading the way. It seems affordability, lifestyle, and working from home have been the key drivers from which these generations have been able to take most advantage.