About| Property Search| List Property| Advertise| Contact

RSS Feed Twitter YouTube LinkedIn Facebook Pinterest G+

The Great Australian Tax Grab

by Marquette Turner

in Money & Business, News & Views, Real Estate Radar

How’s this for short-sightedness: The New South Wales Government’s infinite wisdom to increase taxes by $3.6 billion AUD to compensate for their years of inept mismanagement of states coffers will have a huge impact on the property sector at a time when it can least afford it.

NSW Labor Premier Nathan Rees and Treasurer Eric Roozendaal plans to raise $680 million by increasing the land tax rate from 1.6% to 2% for properties over $2.25 million in land value, essentially a 25% increase, which will increase holding costs for land owners, discourage developments and lead to an increase in rental charges.

The flow on from this will lead to further job losses in the property industry, which is already shedding staff at more than one hundred per week.

We argue that this is not the time for tax hikes, but for the government to show some innovative thought, boost confidence and stimulate the economy. Or at least start spending NSW tax payers money wisely. But then again, given the churn of Premiers in the state and thus their lack of accountability, what do they care?

Simon Turner

FYI: Read more articles on the Credit Crunch; or the NSW Government; or Interest Rates

Leave a Comment

Previous post:

Next post: