they may replace stamp duty with land tax. which means the government would make more money the more land was being occupied - encouraging development. and everyone else would be encouraged to use land more efficiently, as the more people occupying the same space of land, means less tax for everyone. it also means that people won't be punished for moving, something people usually do for practical and efficiency reasons. on the other hand, if like rates, it would be based on the *value* of the land, government's might think: "hey, why go to all the hard work of developing more land, more work, more infrastructure ect, when we could just not do that, which would strangle supply, push up the prices of land, and hence, we'd earn more tax without actually doing anything!!" this is a big worry, because while it will always be in the government's best interest to make sure everyone has accommodation, if you have that, why develop further which would only lower values and lower tax? they will be encouraged to develop just enough land to make sure everybody can *just* afford a place - slaving over multi-generational mortgages... the tax should probably be based off a bias where more desirable areas are taxed higher, but for the reason mentioned above, I don't think using actual dollar value is a good idea.
land tax would also stop little things like land banking ect.
as for stamp duty, I can't really see any good case for it. except of course: "stamp duty is paid once at the beginning, so its more like an investment, where as a land tax would just make buying more like renting, an ongoing cost..." this argument resonates with me. though I feel it may be a simple philosophical one, and irrelevant in the realm of practicality and efficiency.
so yeah, they are just my thoughts, I basically just guessed how land tax worked - basically like rates - so feel free to correct me if I'm wrong.
I think all in all, land tax sounds like a good idea to me. what do people think?
as for the immediate impact on house prices, well, I don't really care... removing stamp duty would be as good as offering a new grant, so that side would boost prices. but the extra ongoing cost of land tax would weigh against it's fundamentals as an investment (income ect) which would have a negative effect... all in all I think it would be negligible, and as I said, I don't care.
what states/territories do not have some kind of land tax through rates ?
On top of water, sewage, rubbish collection, parks and open space, enviroment and other various charges each 1/2 year, we get a land tax as part of the rates.
Is this not the norm ?
or are you guys talking about additional land taxes ?
KIRSTEN CRAZE The Daily Telegraph April 15, 2012 10:57PM
FIRST homebuyers could be allowed to pay off their stamp duty over several years in a HECS-like scheme to reinvigorate the property market. The pay-as-you-go plan is one of several proposed by the Real Estate Institute of NSW and being considered by the state government.
Purchasers would be able to pay off their tax burden over three years but the government would be "protected", with stamp duty guaranteed against the property in the same way as unpaid land tax.
The REINSW also called on the government to slash red tape and apply stamp duty concession on homes purchased by residents over 65, to make it easier for the elderly to downsize their homes.
Since the removal of bonus grants, the stamp duty exemption for purchases under $500,000 and the discount for purchases between $500,000 and $600,000, first-time buyers now only have the benefit of the original $7000 federally-supplied First Home Owners Grant when buying a pre-existing property.
State treasurer Mike Baird said the government kept the stamp duty exemption for newly built property purchases as an incentive for the building sector. However, he said a pay-as-you-go stamp duty scheme for first-time buyers was "an interesting idea" that was being considered.
"I can specifically tell you that is under active consideration," he said.
The state's housing shortage is the worst in the country according to the Housing Industry Association, which estimated in September 2011 that by 2020 it would face a shortfall of 155,700 dwellings.
The Population And Residential Building Hotspots report released last week showed no NSW suburb in the national top 20 of fastest-growing metropolitan and regional areas.
"Housing supply and affordability are the key issues facing NSW and need to be tackled head-on in the upcoming state budget," REINSW president Christian Payne said.
"Convoluted planning controls are delaying the delivery of new housing stock, which is urgently needed to meet the growing demand of thousands of people flocking to live in Sydney."
This is called property tax in other countries – soon (after the crash) we will see it here.
Government will use dodgy excuses like “property tax prevents property bubbles” or "it’s more fair system because rich people pay “more”".
The state government in Victoria has a scheme where stamp duty can be paid up to 3 months later, but if you finance your house lenders insist upon payment of stamp duty upfront.
I think that the scheme would have some problems. First time buyers usually have little savings left after buying, and banks don't want to see more commitments.
Any expressed market opinion is my own and is not to be taken as financial advice
Why don't they just get FHB's newborns to work in a mine for a year once they hit 5 years old?
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
Better yet, allow FHBs to purchase "stamp duty offsets" from developing countries.
For a small fee, the developing country will promise not to cut down a really very nice tree, perhaps with an orangutan in it, in a jungle somewhere. For another small fee, they'll promise not to do it all over again. For another small fee ... well, you get the idea.
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