The details of such a substantial reform are likely to be the subject of debate, and further compromises may be made. Those who purchase a property worth more than $1.5 million would still be required to pay stamp duty up-front. It is therefore likely to be more than if stamp duty was paid upfront as a one-off cost. The land tax would be at the rate of $400 per year, plus 0.3% of the land value, and it would need to be paid every year. This would take effect for buyers from 16 January 2023. In New South Wales, the government has introduced legislation that would give those who purchase a home for $1.5 million or less the option to pay stamp duty upfront or to pay an annual land tax. Some property experts also contend that stamp duty stops people upgrading: afterall, it is often cheaper to renovate than buy another house and pay tens of thousands in stamp duty, and this leads to limited stock on the market and potentially higher prices. However, there are moves afoot to abolish stamp duty in New South Wales and Victoria as a way of helping people to get on the property ladder faster, as stamp duty is one of the biggest up-front costs. Data from the Australian Bureau of Statistics (ABS) showed a record high of $23.970 billion during 2020-21, which was a 7.6% increase on the year before. The amount of stamp duty being collected by state governments is at an all-time high. Forbes Advisor Australia accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in our stories or any other information made available to a person, nor any obligation to furnish the person with any further information. However, Forbes Advisor Australia cannot guarantee the accuracy, completeness or timeliness of this website. We make every effort to provide accurate and up-to-date information. While we do go to great lengths to ensure our ranking criteria matches the concerns of consumers, we cannot guarantee that every relevant feature of a financial product will be reviewed. In comparing various financial products and services, we are unable to compare every provider in the market so our rankings do not constitute a comprehensive review of a particular sector. Providing access to our stories should not be construed as investment advice or a solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any transaction by Forbes Advisor Australia. Readers of our stories should not act on any recommendation without first takingĪppropriate steps to verify the information in the stories consulting their independent financial adviser in order to ascertain whether the recommendation (if any) is appropriate, having regard to their investment objectives, financial situation and particular needs. As such, any recommendations or statements do not take into account the financial circumstances, investment objectives, tax implications, or any specific requirements of readers. To the extent any recommendations or statements of opinion or fact made in a story may constitute financial advice, they constitute general information and not personal financial advice in any form. While we may highlight certain positives of a financial product or asset class, there is no guarantee that readers will benefit from the product or investment approach and may, in fact, make a loss if they acquire the product or adopt the approach. When covering investment and personal finance stories, we aim to inform our readers rather than recommend specific financial product or asset classes. The journalists on the editorial team at Forbes Advisor Australia base their research and opinions on objective, independent information-gathering.
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