Dogs Breakfast of Property Taxes

A recent article in SMH Domain by Michael McNamara called Property Taxes a Real Dog’s Breakfast says that “the taxation arrangements for purchasing and owning property in this country are an absolute dog's breakfast and governments seemingly aren't prepared to do anything about it”.

 

I agree completely and the article’s focus on the following issues.

• Stamp duty is a regressive tax that has increased to levels that make property transfer a significant cost.  Plus the rates of stamp duty vary in every state making for intra-state complications.
• The federal governments failure to take up the many recommendations in the Henry Review on Taxation as they relate to real estate.
• How poorly the NSW government has used section 94 contributions by developers to manage development.
• The manifest policy vacuum and in-action by the last few federal government.

I’d add a few more too, like …

• The use (and ending) of first home buyer incentives to stimulate parts of the property market.
• How land supply has been strangled forever in NSW.
• The failure to ensure that high and medium density targets are met in urban centres.
• The lengthy delays in uniform electronic land titling and electronic conveyancing initiatives. 

Not sure what to do next apart from complain.  But it’s important to realise these issues are hampering the real estate sector.


And, this dogs' breakfast of property taxes is a bit dry and chewy for me.

Francesco ….