Foreigner property taxes are “over the top”

Posted by on August 23, 2016 in Ask the experts | 0 comments

Foreigner property taxes are “over the top”
印花税 悉尼房产

State governments are relying too much on stamp duty taxes, iBuyNew CEO Michael Mendel said, and, not surprisingly, most people want it scrapped.

Most Australians believe the best way governments can assist the property market is to stop overburdening homebuyers with the crippling costs of stamp duty, according to a national survey.

The poll by iBuyNew, which asked what the best way would be for government to assist the property market, found 55 per cent of respondents wanted to cut stamp duty.

Thirty per cent of participants in the online survey suggested increasing first home buyer grants would be most effective, while 15 per cent called for negative gearing to be scrapped.

Most governments remain over-reliant on stamp duty.

State governments still have an unhealthy dependence on stamp duty which is just a drag on the economy and a handbrake on homebuyers.

If governments are not prepared to abolish stamp duty, they should at least consider reductions or more concessions for certain buyers.

Greedy state governments had also been behaving badly by slugging foreign investors with excessive new surcharges and tax increases.

Foreigners buying property in Australia should be paying some tax but the measures that were recently announced by the NSW, Victorian and Queensland governments were over the top.

 

iBuyNew survey results:

 *What would be the best way for government to assist the property market?

Cut Stamp Duty 55%
Increase first home owner grants 30%
Abolish negative gearing 15%


Property expert

Mark Mendel is the chief executive officer of iBuyNew, an online property agency which sells off-the-plan property across Australia, including apartments, townhouses and house and land packages.

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