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Thursday, June 01, 2017

Stamp duty overhaul to give first home buyers a $1.9 billion leg up in Sydney's soaring property market - by DOUBLING taxes on foreign investors

The NSW Government is set to announce extra taxes for foreign property buyers International buyers will now pay 8% of the worth of the property in stamp duty  Annual land tax surcharge on foreign buyers is increasing from 0.75 to 2% a year The extra money is expected to fund help for NSW's struggling first-home buyers The changes will reportedly be implemented for buyers from July 1, 2017  By Ashleigh Davis For Daily Mail Australia Published: 02:06 +10:00, 1 June 2017 | Updated: 02:41 +10:00, 1 June 2017 e-mail 12 shares 19 View comments Foreign property buyers will soon be forced to pay more than double the current taxes when they purchase a property in New South Wales. The increase is part of a $1.9 billlion plan set to be announced by New South Wales premier Gladys Berejiklian on Thursday, reported the Daily Telegraph. The plan will see international buyers pay 8 per cent of property's worth in extra stamp duty charges, an increase from the current rate of 4 per cent. +5 Foreign property buyers will soon be forced to pay more than double the current taxes in stamp duty when they purchase a property in New South Wales (stock image) +5 The increase is part of a $1.9 billlion plan set to be announced by New South Wales premier Gladys Berejiklian (pictured) on Thursday The annual land tax surcharge for foreign buyers will also increase from 0.75 to 2 per cent a year. The extra money is expected to fund help for NSW's struggling first-home buyers.  RELATED ARTICLES Previous 1 Next 'I'm going to blow up this plane': Man 'claiming to have... 'If these people hadn't come here as refugees, the people... Share this article Share Increases to the stamp duty surcharge and the land tax surcharge are expected to raise $1.9 billion over the next four years.  Stamp duty charges on existing homes for first-home buyers were removed by former premier Mike Baird, but are now set to be reintroduced by the current state government.   +5 The plan will see international buyers pay 8 per cent of the worth of the property they purchase in extra stamp duty charges (stock image) The Foreign Investor Surcharge Duty (stamp duty surcharge), which will double to 8 per cent from July 1, 2017, is in addition to the transfer duty of up to 7 per cent that foreign investors already face. This means foreign buyers could soon face paying 14.5 per cent of the total purchase price of the most expensive properties in NSW.   The new measures are tougher than any other state in Australia, including Victoria which charges foreign buyers 7 per cent stamp duty and 1.5 per cent land tax.  The announcement compares with others in Hong Kong and Singapore, where governments charge 15 per cent stamp duties to foreign buyers. In the Canadian states of British Columbia and Ontario the governments have also implemented 15 per cent foreign buyer transfer taxes.   Read more: http://www.dailymail.co.uk/news/article-4559306/Plan-help-home-buyers-Sydney-massive-property-prices.html#ixzz4iozN0Kgx Follow us: @MailOnline on Twitter | DailyMail on Facebook ================================================ Stamp duty rip-off forcing sellers to stay put May 5, 201712:44pm Video Image Pause 0:02 / 1:23   Fullscreen Autoplay Adelaide's Afternoon Newsbyte 2 June 2017 0:53 12-year-old crowned U.S. Spelling Bee champion 1:26 Refugee a code word for Muslim: Prof Humphrey 6:25 No ugly ducklings here, just cute cygnets 0:35 PHILIPPINES: Emergency Services Respond to Scene of Manila Casino Attack June 02 1:03 Warriors crush Cavs in game 1 2:33 AU NSW: Icicles Form on Statue as Winter Rolls Into Northern Tablelands June 02 1:08 KD v Rihanna: The stare down 0:40 Julie Bishop is not Australia's "Floral Minister" 1:43 'Dozens dead' in failed Manila casino robbery 1:47 AUSTRALIA: Turnbull Confirms Commitment to Paris Climate Pact, Backbenchers Argue for Exit June 01 2:37 Macdonald jailed for at least seven years 3:57 'Dozens dead' in failed Manila casino robbery 0:32 Macdonald jailed for at least seven years 1:51 Family and supporters of murder victim Jody Meyers leave court 0:12 Police appeal for information over robbery at Kallangur 0:18 Swan Lake trailer final 3 1:05 Tourist shamed for being disrespectful to Queen's guard 0:30 Durant's easy dunk show 0:35 Adelaide's Lunchtime Newsbyte 2 June 2017 0:53 Treasurer talks housing affordability and the budget Frank Chung news.com.au @franks_chung Share on Facebook Share on Twitter Share on Google+ Share on Reddit Email a friend AUSTRALIA’S “worst tax” is stopping nearly half of potential sellers from listing their homes, driving up demand and impacting affordability, a new study suggests. The survey of 2700 of homeowners, commissioned by LJ Hooker, found 44 per cent of respondents who wanted to sell their home in 2016 but decided against it cited transactional costs such as stamp duty they would pay on their next property as the reason. Just over half said they would likely go to market if stamp duty were lessened, while 61 per cent would have gone to market if it were scrapped altogether. LJ Hooker said 60 per cent of survey respondents who requested an appraisal last year decided against selling. “Homeowners are staying in their properties for longer periods of time which is reducing the necessary turnover of stock,” said LJ Hooker network chief Graeme Hyde. “With an increasing and ageing population, it’s important all market demographics have the confidence to buy and sell in the marketplace to aid sustainability.” Soaring property prices, particularly in Sydney and Melbourne, have flooded the coffers of state governments with stamp duty receipts. Stamp duty generally accounts for around one quarter of all state government taxation revenue. “As stamp duty is pegged by the state governments to property prices, we’ve seen transactional costs rise exponentially,” said LJ Hooker head of research Matthew Tiller. “In Sydney, the sale of a median-priced property costs a buyer around $40,000. In Melbourne, the 5.3 per cent duty adds $37,520 for buyers.” CoreLogic figures showed an 8.9 per cent drop in listings and a 9.2 per cent drop in transactions in 2016. Transaction costs, including stamp duty, now account for up to 8 per cent of the value of the home, “reducing the incentive to buy and sell in the same market”, Citi wrote in a report this week. The Property Council, which has long advocated for a complete abolition of Australia’s “worst tax”, says stamp duty can add more than $60,000 to the cost of a typical Sydney home over the life of a mortgage when interest is taken into account. Earlier this year, Victoria announced it was scrapping stamp duty for first home buyers on homes valued up to $600,000. In NSW, where a similar exemption exists for new homes up to $550,000, Premier Gladys Berejiklian has conceded it must be explored for existing properties. Last year, a report by the McKell Institute think tank recommended scrapping stamp duty and moving to a “simpler, fairer” land tax system, which would remove upfront costs on purchasing a home and bring benefits in its own right. “A stable and simple form of revenue that cannot be avoided, land tax would improve housing affordability through incentivising a better allocation of housing, while also allowing for transport infrastructure to be financed through value capture financing,” the report said. frank.chung@news.com.au ============================= This is the sweet spot for first homebuyers in NSW wanting the best deal out of the new stamp duty cuts image: https://secure.gravatar.com/avatar/7f414d980ee914853d08c9068e951e9f?s=32&d=mm&r=g Chris Pash Jun 2, 2017 image: https://edge.alluremedia.com.au/uploads/businessinsider/2017/06/sydney-property.jpg William West/AFP/Getty Images New South Wales, in releasing a package of measures aimed at improving home affordability, has given first homebuyers a big hand in getting a start in property ownership. Stamp duty concessions now apply for those buying either a new and or existing home. All stamp duty for first homebuyers on new homes up to $650,000 has been abolished, a significant saving on the total cost of purchase. And stamp duty discounts apply after that, up to a limit of $800,000. The savings are smaller for existing dwellings, but are still significant. NSW also abolished stamp duty charged on lenders’ mortgage insurance, which is often required by banks to lend to first homebuyers with limited deposits. This would save about $2,900 on an $800,000 property. The changes start on July 1. Barton Deakin, a government relations consultancy aligned with the Liberal-National Coalition, produced this table showing the savings for both new and existing homes:    by Taboola  Sponsored Links  You May Like Best Dating Sites to Find Love in 2017 Top 10 Aussie Dating Sites The Secret You Need to Know About Ebooks The Book Insider image: https://edge.alluremedia.com.au/uploads/businessinsider/2017/06/barton-deakin-table-1.jpg The total saving is actually greater than the current normal stamp duty, according to Barton Deakin, which did the calculation using the total stamp duty exemptions plus first home owners grant and then added the savings from lenders’ mortgage insurance duty abolition. The sweet spot — the maximum saving — is for new homes costing $600,000, and for existing dwellings it’s $650,000, as this chart shows: image: https://edge.alluremedia.com.au/uploads/businessinsider/2017/06/nsw-stamp-duty-sweet-spot.jpg Image: Business Insider The stamp duty savings for a new home costing $600,000 is $34,361, compared to $24,361 for an existing dwelling. A $650,000 existing dwelling saves $26,857 in stamp duty, the same amount as a new home. And among the measures announced by the NSW government are increases in fees for foreign buyers, aimed at cutting demand for property. The foreign investor stamp duty surcharge will be doubled to 8% from 4% and that for land tax increased to 2% from 0.75%. Read more at https://www.businessinsider.com.au/chart-this-is-the-price-sweet-spot-for-nsw-first-homebuyers-under-the-new-stamp-duty-concessions-2017-6#wxWS2mGYCrM3mQvw.99 ====================== Victorian Government axes stamp duty for first homebuyers March 5, 20179:52am The Victorian Government will abolish stamp duty for first homebuyers. Julia Corderoy news.com.au Share on Facebook Share on Twitter Share on Google+ Share on Reddit Email a friend VICTORIA has thrown a lifeline to young people struggling to get on the property ladder by axing stamp duty for first homebuyers. From July, the controversial property tax will be abolished for any first homebuyer in Victoria whose property costs less than $600,000. There will also be discounts for properties worth between $600,000 and $750,000, regardless of whether they are new or existing. Premier Daniel Andrews will formally unveil the plan today, which is expected save 25,000 first homebuyers an extra $8000 a year, as a part of his government’s cost-of-living package. The announcement comes just days after the Andrews Government doubled the First Home Owner Grant in regional Victoria. Commencing 1 July 2017, the grant will increase from $10,000 to $20,000 and is expected to help 6000 first home buyers in regional Victoria to build and live in their own community. “By doubling this grant, we’re giving young people in regional Victoria even more reason to live locally,” Mr Andrews said. Victorian Premier Daniel Andrews.Source:AAP THE MOST HATED TAX Stamp duty has long been a source of contention with reform being a major priority for many in the property industry. The Real Estate Institute of Australia (REIA) called on the Commonwealth Government to abolish the much-hated tax for first homebuyers nationwide in its submission to the 2016-17 Budget. “We are also asking that the Federal Government take a leadership role in abolishing state-based stamp duties as analysis shows that economic activity in Australia can be lifted by just shifting the composition of taxes from high economic cost State taxes to Australia-wide taxes,” REIA President Neville Sanders said. And in its submission to the Victorian State Budget, the Real Estate Institute of Victoria (REIV) echoed these calls. “In its 2016-17 Federal Budget submission, the Real Estate Institute of Australia called for stamp duties to be abolished for first home buyers nationwide, requesting the Federal Government take a leadership role in this. Our position is consistent with this,” the submission stated. “Reducing stamp duty provides a more efficient outcome for both the buyer and the state, as it reduces the number of transactions and red tape created through the application process. “The REIV favours this method of assistance for first home buyers for two additional reasons: firstly, if the structure is based on a proportion of the tax paid, the benefit to the buyer is less likely to be diminished by increases in house prices; and, secondly, the assistance is the same for all first home buyers.”

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