Do you mind paying Stamp Duty ?

Taxes - fees, levies, rates, royalties, fines, excises, supplements - call them what you like - have several broad purposes. They aim to modify markets, punish, change behaviour etc; they aim to purely raise revenue, or they try to purely recover costs. Or more realistically a combination of all.

Apart from the first purpose, taxes should attempt to change behaviour as little as possible and be administrated in the most efficient manner.

SD is very effecient - it costs bugger all to the tax payer directly to comply with and not much for the government to administer as a percent of what it collects. However, it grossly distorts behaviour and discourages workforce mobility.

 

This must be a trick question?
70+ said yes, I think you got the answer right

 

Mmmmm... Well so far its a different ( answer) outcome from when the question was asked earlier this year...lets wait and see first... not everyone has had the chance to respond.

I notice one poster has posted he is totally against Stamp Duty but in the thread earlier this year he was all for it.. Seems I cant win.

 

I think I pay too much tax as a property investor/developer in Australia, ie stamp duty, gst, cgt, they take a bite at each end

I invest in USA and NZ No Stamp duty, no CGT in NZ, and in USA you can sell and not pay CGT if you continue to purchase. Australian tax for property investors is harsh in comparison


mtr

 

Don't blow your cover star of David

 

I think the question last year 'does stamp duty prevent you from buying' and the answer is invariably 'no because it's the cost of doing business' that didn't mean people were in favour for it.
I actually haven't voted for either side in this poll as I don't fall under either category. I'm pro stamp duty if its a reasonable amount, but in it's current form I don't like it.

 

Everyone thinks they pay too much tax. But demand services and breeding welfare

I

 

Property is probably the most heavily taxed asset class. You're taxed stamp duty when you buy, land tax and income tax as you hold it (depending the value of the property and the gearing), capital gains tax when you sell.

The government also charges separately the cost of administering the transaction via mortgage and land registration and deregistration fees.

Most other assets simply enjoy capital gains when you sell, and income tax based on the gearing. Your not taxed on aquisition or for the privlidge of ownership. So yes, I resent paying stamp duty.

Frankly though there's no chance that the state governments will give it up, so there's little point in complaining about it. The two largest sources of state revenue is GST and stamp duties. The Federal government allocates the GST distribution. Stamp duty is something the states can exert some control over.

 

Its very likely that stamp duty will be raised perhaps to 15-20% in the very near future.

 

I wonder how this will affect house prices?

Will they increase in price ? Or will people stop buying as it will cost to much?

 

Effect everyone.
For me GST is another 10% of my profit to tax man who is my other partner.
I guess I wont be selling so much stock. I will probably keep most moving forward if this happens, unless there is some better reason to sell.

MTR

 

I would be very surprised is that happens while at the same time Governments are trying to encourage people to move to where the jobs are.
Punishing the labour market is not a smart move.

 

There is no point in having a opinion on this it is what it is lol.

 

Where do you get that idea from?

 

So instead of going into your pocket it's okay for it to goto the govt? This is illogical.

 

Looks like there is going to be 8x State Governments shaking in their boots come the new year. An astounding 25 people have said they hate paying Stamp Duty on a forum poll. I think you should lobby this straight away.

I can feel some serious policy changes coming on with this resounding result from State Governments who will right away give away one of their biggest money spinners, in favour of rosy property investors who think they have the right to hold tight their money.

Scary times ahead.


pinkboy

 

stamp duty sucks the big one..in ACT the govt started jacking up council rates/lowering stamp duty in 2012, with a 20 year plan to phase stamp duty out...but thats already been pushed out with no end date (to 'decades at least' if at all), on stamp duty.

rates have been going up 10% PA without fail, and from what ive read that is really starting to bite so govt has realised they cant jack them up willy nilly for ever (and hence remove/lower stamp duty) and their plan was flawed.

long live stamp duty...

 

Government needs to raise money with iron ore prices in free fall there are not too many options. Been discussed on many programs regarding this happening, seems logical to me that its not if its just when. How much it will rise is the question IMO??

Adopting New Zealand-style GST system would raise billions: MP

 

At least these 2 things that you're so worried about are easily avoided. Either pay your credit card in full and on time or don't have one; and use you're bank's ATMs. And @ $2.50/$3 per transaction, that's the price you pay for convenience, if you can't get to your bank, or haven't planned ahead.

 

I ask again, where do you get the idea SD will be raised to 15-20% in the very near future? Not sure what you mean by 'discussed on many programs'.

Your quoted article seems to indicate you are confusing stamp duty and GST.