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Reforming the property tax system

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Michael Mata | 01 Dec 2017, 12:00 AM Agree 0
A think tank recommends creating a single transfer duty with a state-specific, duty-free threshold that would be applied to all residential property transactions
  • Alex | 01 Dec 2017, 04:14 PM Agree 0
    ACT has already started the tax reform a few years ago. The reoccurring Land Tax has been introduced to landlords and it is ramping up at a double digit rate. The land tax value for majority of 2-3 br unit is often in excess of $2,000 and it keeps growing - it is not anywhere close $47-130 as the article suggests. It is naive to think that taxing investors will not have effect to rent. Inevitably investors will have to pass the new ongoing tax to tenants. The new tax also suffocates investment in affordable rental accommodation because they are often taxed similar or even higher to more expensive properties. While the real estate prices in Canberra are lower than in Melbourne or Sydney the rent for similar properties is often higher. The new tax system may be more efficient but it just makes poor even poorer.
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