Annual land tax for term of property occupancy or once-off stamp duty at purchase time ?
Today our state govt (nsw australia) proposes a very big property tax reform as part of the state budget - replacing stamp duty with (optionally) land tax charged annually just like local council rates.
Originally it was going to be land tax in perpetuity once a property is added into that system, but now it's apparently only going to apply for the term of one's occupancy which means when a property is sold the new owner will be able to chose between stamp duty at purchase time or paying land tax annually. That isn't confirmed yet.
I don't own a property nor am I financially in any position to consider buying one so I haven't really run any numbers, but once the fine detail of the land tax scheme is known maybe I will. I've been renting for about 14 yrs now so keen to see what effects it'll have on rents and the rental market in general.
The state gov's reason for proposing it is because stamp duty is a very high cost for people trying to get into a property for the first time, esp with property values skyrocketing during the Covid plandemic since 2020. So replacing one-off stamp duty with annual tax can be a way people might be able to get into owning a place to live.
What are you thoughts on this and how is it done in your part of the world?
Currently in most of Australia properties are costing people about 8 times their annual income in the area they currently live compared to about 10 yrs ago when it was about 3 to 4 times their annual income.
Originally it was going to be land tax in perpetuity once a property is added into that system, but now it's apparently only going to apply for the term of one's occupancy which means when a property is sold the new owner will be able to chose between stamp duty at purchase time or paying land tax annually. That isn't confirmed yet.
I don't own a property nor am I financially in any position to consider buying one so I haven't really run any numbers, but once the fine detail of the land tax scheme is known maybe I will. I've been renting for about 14 yrs now so keen to see what effects it'll have on rents and the rental market in general.
The state gov's reason for proposing it is because stamp duty is a very high cost for people trying to get into a property for the first time, esp with property values skyrocketing during the Covid plandemic since 2020. So replacing one-off stamp duty with annual tax can be a way people might be able to get into owning a place to live.
What are you thoughts on this and how is it done in your part of the world?
Currently in most of Australia properties are costing people about 8 times their annual income in the area they currently live compared to about 10 yrs ago when it was about 3 to 4 times their annual income.
