State budget changes to stamp duty - Published by REIWA 9 May 2014 The state budget released yesterday makes some key changes to property taxes that will begin on 1 July this year. Stamp Duty The stamp duty threshold on established homes for first home buyers drops from $500,000 to $430,000. The full schedule will phase in between $430,000 and $530,000. It will mean, for example, that a first time buyer purchasing an established dwelling at $460,000 will now pay around $5,700 in duty. This tax will apply to about one third of first home buyers. There are NO changes to stamp duty on land for FHBs, with the tax free threshold remaining at $300,000 and tapering out at $400,000. There are NO changes to general stamp duty for other buyers. Land Tax Land tax has been increased by 10 per cent. This is on top of the 12.5 per cent increase from last year. First Home Owners Grant The FHOG is unchanged at $3,000 for established homes and $10,000 for new-builds. Summary As REIWA President, its my view that the change to the FHB stamp duty concession is not good, but could have been worse under the circumstances. However, the further hike in land tax is disastrous and will be a major blow to investors and to small business. Yours sincerely, DAVID AIREY REIWA PRESIDENT
Posted on: Fri, 09 May 2014 04:43:17 +0000
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