Land taxes may be coming, what will it mean for retirees?

Victoria and NSW are considering scrapping stamp duty in favour of land taxes.

Land taxes may be coming, what will it mean for retirees?

The COVID-19 pandemic has presented many opportunities to change the status quo, and one of the biggest reforms governments are looking at is scrapping stamp duty in favour of a land tax.

Stamp duty is a much-reviled tax on property purchases, which most people agree is horribly inefficient and penalises new home buyers unnecessarily. Unfortunately, state governments rely on this revenue to generate revenue and it is incredibly hard to change the revenue base.

However, the latest crisis has resulted in both the NSW and Victorian governments seriously looking at scrapping the ineffective tax and replacing it with a land tax levied annually on all home owners.

If this passes, what will it mean for retirees?

Firstly, the good news. Stamp duty is one of the leading barriers to older Australians downsizing in retirement.

What is the point of selling the family home only to lose a significant portion of the household capital to pay for the stamp duty on a smaller residence?

With stamp duty removed we can expect it to be much more rewarding for older Australians to sell their larger properties and downsize into something more affordable, and reap the reward from the capital invested in their home.

It is also likely that new homebuyers, who will be interested in buying these properties, will still be willing to bid up to the maximum amount they are able to afford, which means house prices may increase with no stamp duty to be paid on the purchase, which could mean more money in the pockets of those looking to downsize.

For those retirees who do not want to downsize, or have already downsized, the prospects are not as bright.

A land tax will be a new annual tax paid by all homeowners. This is an expense that those who have already retired would not have budgeted for and will have to pay. And it won’t be cheap; with many predictions suggesting the land tax may be more expensive than current council rates.

Making the proposed land tax even more unfair is the fact that current homeowners have already paid stamp duty on their property, so will in effect be paying the price twice, compared to new homebuyers.

The people hardest hit by the changes will be those who are asset rich but income poor, and most retirees fit squarely into that category.

The ACT is already in the process of replacing stamp duty with a land tax, but it is making the change gradually to limit the damage done. The ACT reforms are taking 20 years to be implemented and stamp duty won’t be completely abolished until 2032.

As yet there is not enough detail on how the Victorian and NSW state governments are planning to phase in these changes, but it is hoped that the retirees will be looked after by ‘grandfathering’ any changes so that those who already own a house stay under the old rules until they buy a new house.

There are also suggestions of allowing people to opt in or out of the land tax system, giving people the option of paying a large up-front stamp duty bill or allowing them to pay a few thousand dollars each year based on the value of the land.

What do you think of the proposals to scrap stamp duty and introduce a land tax? Do you think it will hurt retirees?

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    COMMENTS

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    Farside
    7th Jul 2020
    1:21am
    Any foundation economics text book will inform that land taxes are good taxes - they are efficient, difficult to avoid, consistent and help ensure the economic potential of the land is realised. A lot of people will hate them for the consequences of those very same reasons – the ability to pay – unless there is compensation for increased tax hit. Fun times.
    Marty1
    7th Jul 2020
    12:48pm
    I can’t see any fun in this they might as well make us homeless.
    Ned Kelly got Hung for less
    Farside
    7th Jul 2020
    5:04pm
    you need to refresh your history, Ned Kelly murdered a cop in cold blood, remembered yes but for the right reasons
    NoFreeLunch
    7th Jul 2020
    10:14am
    All in favour of it, so long as there is, as mentioned no ‘double dipping’, if you have already paid stamp duty on your property you are exempt until you purchase again.
    Ok
    7th Jul 2020
    11:14am
    I agree. Many of us had to pay massive stamp duty. Having to pay a land tax on top of it would be totally unacceptable.
    Chaz
    7th Jul 2020
    11:25am
    Agreed also. Having paid stamp duty on my property, should not have to keep paying. Fine if I sell up and move.
    Patriot
    7th Jul 2020
    12:32pm
    Stamp-Duty paid - NO land-tax would seem fair to me.
    Governments are "Double Dipping" quite enough!
    Farside
    7th Jul 2020
    12:42pm
    I expect that would be factored in given the ACT timeframe as an example.
    Mariner
    7th Jul 2020
    3:14pm
    Hehe - reminds me of that old chestnut - I paid my taxes and now I want my pension - never works that way. If there is juice in a lemon it will be squeezed. We had land taxes in Vic as well as FID (remember that?) There will always be someone looking for another way to bleed us.
    Farside
    7th Jul 2020
    5:05pm
    still have state land tax in Vic with an exemption for primary residence
    BraveArrow
    7th Jul 2020
    10:19am
    Don't know the details re landtax compared to stamp duty + ongoing council rates so cannot comment it this stage and as mentioned by Farside, it should be grandfathered for those who have already paid stamp duty and to apply only to new purchases.
    Retirees can then compare the two costs if they decide to sell and buy another property.
    TOR888
    7th Jul 2020
    10:54am
    No stamp duty, no land tax, no fuel tax..just increase the GST on everything..easy..
    Patriot
    7th Jul 2020
    12:35pm
    Just put a "Sur-Charge" on ANY financial transaction and abandon EVERY other TAX.
    Just think how many public servants this would release to do some productive work!!!
    AND, it would ensure the FatCat Corporations would pay their share of taxes as they - at this stage i think - cannot escape this mechanism
    Farside
    7th Jul 2020
    12:49pm
    I would like to see GST simplified with no exemptions. The argument against increasing GST is that it disproportionately affects low income households, though there would be room for increasing benefits to offset GST increases.

    There is a lot to be said for a tax on revenue and financial transactions; these would undoubtedly be passed onto customers as a cost of doing business but it would ensure corporations not paying corporate income tax paid some taxes.
    On the Ball
    7th Jul 2020
    1:09pm
    NO increase in GST!!!
    We were duped when it originally was foisted on us. It was supposed to replace stamp duty!!
    Now they are suggesting another tax to get rid of stamp duty?

    GST is a 10% slug on our economy. Increasing it just makes business that much harder, and encourages a bigger black economy. its like driving with the handbrake on.

    A smart lawyer could start a petition against the new land tax on established properties, as we can't be taxed twice. It works for the Governments mates using negative gearing, so why tax US twice?
    The reason they are considering this is because stamp duty is a one-off. A land tax is ongoing...
    hyperbole
    7th Jul 2020
    2:00pm
    have said for over 12 months raise the gst to 12.5%...now this is being mooted. We are one of the lowest in the world re gst.....the average is 11% as far as I am aware. I think we should raise it and broaden it as well; all this spending has to be paid for one way or another.
    MITZY
    7th Jul 2020
    3:53pm
    Why should we raise the GST. John Howard said it would stay at 10% and not be raised ever. He said "everything" we purchase increases in its price year by year so that automatically means the GST at 10% is always increasing anyway. Why just because our GST charge is 10% and considered to be one of the lowest is it necessary to follow suit and raise it in line with other nations. Leave it as it is, governments get enough share out of it now and in the future. Land tax every year instead of stamp duty up front needs a lot more information given to the public before it is worthy of being commented on. Be assured most changes will always be in favour of the government, not the land owner.
    Winston Smith
    7th Jul 2020
    10:55am
    Seems like good and fair idea to me.
    clancambo
    7th Jul 2020
    11:29am
    Obviously, you are NOT a thinker!
    Suddha
    7th Jul 2020
    10:57am
    Agree with "NO FREE LUNCH". We should not have to pay Land Tax as we have already paid Stamp Duty when we purchased. OK if we decide to move to another property then I agree with the proposal. As retirees on a Pension it will make it very difficult to make these new payments. After all we have paid all taxes during our working lives.
    Rae
    7th Jul 2020
    6:32pm
    Young people paying off very expensive homes while trying to raise families will find it harder.

    We can stay home and not spend anything else much to pay a few thousand extra a year. Eat bake beans and so on. The young have kids at school and can't afford childcare and insurances right now so an extra tax will really hurt them.
    Horace Cope
    7th Jul 2020
    10:57am
    "What do you think of the proposals to scrap stamp duty and introduce a land tax? Do you think it will hurt retirees?"

    Is there a proposal? My understanding as regards NSW is that the possibility was discussed by the media and rejected by the state government. Assuming that a future state government might widen the already imposed land tax, I agree that grandfathering will stop those who have already paid stamp duty from being penalised twice. That in itself raises an interesting dilemma; some first home purchasers were/are exempt from stamp duty so would they be exempt from a widened land tax?

    Retirees would be badly disadvantaged, especially those on just an age pension. Some councils have been withholding rates which will be collected once a property is disposed of and unless a state government is prepared to allow this concession, it may be difficult for some home owners to meet the additional cost. As has been discussed in this forum many times, there are modest family homes in sought after areas that are worth in excess of $1M and a tax is levied on the value of a property.
    Rae
    7th Jul 2020
    6:37pm
    Time for property prices to collapse I think. It's too big a bit of money for the greedy to not want at it.
    We rejected reverse mortgages so this is their next idea. Priceless.

    If they just got off their butts and used all the brainpower to create wealth instead of trying to steal it Australia would be a far better place.
    mogo51
    7th Jul 2020
    10:59am
    What is council rates, if it's not land tax. How much do they think is 'under the mattress'.?
    Tanker
    7th Jul 2020
    11:05am
    Council rates are to pay for the things for which council's are responsible, e.g.rubbish collection.
    Land tax will be levied by the State's. Different imposition for different purposes and both are necessary.
    It is probably a long overdue reform provided it is grandfathered.
    Golden Oldie
    7th Jul 2020
    11:24am
    Tanker, council rates are also based on land value, or land and dwelling value, and depends on the efficiency of each council. If it was based on services, then all rates within a council would be the same, but bigger, better houses are charged more. Same with water rates, 1 toilet is cheaper than 2 toilets in a house. It is not taxed just on water usage.
    Mariner
    7th Jul 2020
    3:25pm
    Tanker - grandfathering means "I have mine now let the others pay their dues". Think about that. If it is coming even stay at homes for ever should pay it not just the ones that have to move. Only fair to everyone.
    Lookfar
    13th Jul 2020
    2:34pm
    Mogo, the original concept of Land Tax, as I understand it, is that the land can earn a certain amount, - growing wheat, whatever, and that a portion determined by the Bully Boy, (Lord) of that land, was to be paid to the bully boyy and then a proportion to the King, who owned/claimed all of the land by right of conquest.

    This percentage was determined by the said bully boy, and those who overstepped were occasionally killed by their own Peasants.
    Rome raised this to a new art form by taxing more than the land could produce, thus causing all farmers on marginal land to have to leave, or be imprisoned for non payment of taxes, -this single act of Gross stupidity was the cause of the fall of the Roman Empire, (not the lead lining of the Aquifers, although that could be argued to be part of the problem because that poisoning may have led to the passing of that final death stroke to the empire, - whatever, the overtaxing of land has always been the main cause of overthrow of the Bully boys.

    Now we have a funny situation, Land with a house on it, is worth more than it can produce, - the house itself produces very little, - particularly a smaller house in the suburbs, but can be valued at a million dollars, produces virtually nothing.

    This is a perpetuation of an old, dead, bad, hierarchical systems, so it doesn't work.

    What a modern Democratic country has is Ownership of the Land, By the People.

    To put that into modern Land ownership parlance is the challenge.

    To do it fairly despite the new Bully Boys of the Multibillionaires, is an even bigger challenge, - but we have grown, us human beings, since then, - it is doable, - that is what we must hold to our hearts, - it is doable.

    That our modern system is based on the overthrow of the old bully boys is something the Multibillionaires don't accept, - greed never accepts curtailment, despite it destroys every civilisation within which it is allowed to dominate, - we must not allow it to dominate.!!

    It is time to look back on the Magna Carta, to look at where we have gone and at our base, and to think about where we are going.

    This is the job of the old, - to think and assimilate, to see the problems and the mistakes, to realise that the next Generation needs guidance, and to realise we have to be worthy to earn the respect of the next generation.

    7th Jul 2020
    11:18am
    One of the taxes that was meant to go when GST came in was stamp duty (a regressive tax) the other bad tax is payroll tax - think about that one - government taxes a business more for employing more - what a disincentive. However the original GST was a flat tax on everything but politics got in the way so GST was limited so States kept some taxes to overcome perceived revenue shortfalls.
    We should revisit GST and have a flat tax on everything.
    The potential issue with land tax is that many people who have lived in same house for years may now incur a new tax.
    Perhaps it is time for all governments to. focus on core functions and reduce spending on non essential items. We could all list millions of dollars of those.
    Gonfishing
    7th Jul 2020
    11:44am
    Agree. Impose GST on everything and compensate appropriate people. This will still raise more than land tax according to John Hewson.
    4b2
    7th Jul 2020
    12:25pm
    Agree. Especially with increasing the GST and cover all purchases. Allow each state to keep a minimum of 80% 0f the revenue collected in their state.
    I also think company tax should be similar to the GST a simple 1.5% on turnover. The GST takes care of capex. and the government can introduce exemptions for large investments in infrastructure for mines and other areas of infrastructure required to stat up NEW projects.
    Youngagain
    8th Jul 2020
    8:26pm
    Compensate appropriate people? Can never happen! There will always be people who are seriously hurt by an increase in the cost of living who don't get any compensation. GST transfers the burden of tax from the rich to the poor. If you think the poor should carry the rich man's tax burden, then sure, vote for increased GST - and for increased hardship and unfairness. But then, perhaps you are rich and greedy?
    clancambo
    7th Jul 2020
    11:27am
    I will go to prison before I pay a land tax unless I'm repaid in full, the total amount of stamp duty on property that I have purchased until now!
    Oxleigh
    7th Jul 2020
    11:44am
    John Howard said there will be no GST !!!rubbish, it happened without dropping all other taxes as promised.

    Bob Carr Theif dropped a land tax on us after him and all his mates sold all holdings in NSW and bought up in New Zealand, when it was introduced and the row started they all resigned and went to live it up on their ill gotten gains.
    When it was morally dropped it was not until the end of the year so when I sold a property it still had to be paid.
    Now the pollies want to double dip, if this happens we all should rise up and pee the government off.
    They are using the people who built this country to line their pockets.
    I wont down size and wont be bullied.
    Don't be surprised in a couple of years down sizing will be made compulsory, its coming if you live in a big house with vacant bedrooms there will be a penalty on your rates and land tax if you don't down size.
    BELIEVE ME IT IS COMING.
    4b2
    7th Jul 2020
    12:26pm
    I bet it wont apply to politicians past and present.
    Farside
    7th Jul 2020
    12:55pm
    One of the factors that favour land taxes is the economic potential of the land being realised. You can stay as long as you have the capacity to pay.
    midnight
    7th Jul 2020
    11:46am
    Sounds sensible, unless those who have already paid stamp duty are double hit, which includes so many seniors and pensioners.
    Farside
    7th Jul 2020
    12:56pm
    No biggy, most of the seniors and pensioners will drop off the perch over the next twenty years if it is a progressive transition like ACT.
    Rae
    7th Jul 2020
    6:45pm
    You think all those unemployed home owners are going to find an extra few thou for land tax each year in the coming depression? They can't afford their childcare and need subsidies so a new tax won't go down well.
    Von
    7th Jul 2020
    11:52am
    Land tax is another grab for money from those who only have the property they live in. Not everyone would be able to pay this tax as it would be higher than council rates. Who is to say that we would not have to pay both, if they want to look at making money, why do blocks of units only pay the same as the block of land next door with a single house. the rates are divided between the tenants.
    I do understand that this covid-19 has put a strain on the Goverments finances, but i would sugges, get rid of all wholesale tax, and put a 20% GST. then everyone pays, invluding the rich. a lot of us who own our home are only just able to make the rate payments,
    Farside
    7th Jul 2020
    12:59pm
    State and federal land taxes are separate to council rates. You may have to pay all three if land tax in each jurisdiction.
    geordie
    8th Jul 2020
    7:38am
    Each unit pays the same as the property next door mate. I live in a small block of ten units, and I pay over 3000.00 a year in rates. My neighbourIng house owner with 4 beds and a pool pays less than I do. The system is rigged.
    Farside
    8th Jul 2020
    5:56pm
    geordie, rates calculations are not rigged, you just need to understand the basis for determining your assessment. It sounds like you should look at your share of the site valuation, which will be reflected in the price of your unit. I know Qld and Vic have explainers to help people understand the rates calculation; check your state.

    https://www.localgovernment.vic.gov.au/council-innovation-and-performance/council-rates-and-charges/calculating-rates
    Youngagain
    7th Jul 2020
    12:06pm
    Stamp duty was supposed to have been abolished with the introduction of GST.

    For those who want GST raised instead, think again - unless you are well off and VERY SELFISH. GST imposts hardest on the poorest. It's a seriously regressive tax that transfers the burden of taxation from the wealthy to the poor. No amount of 'compensation' will ever properly compensate all those who are hurt by an increase. Compensation is always extended only to people in certain categories - e.g. pensioners. It always excludes a great many who are struggling on very low incomes. I dislike stamp duty, but it is avoidable by not buying property. Similarly, land tax can be reduced by owning lower value property. GST is an impost that can't be avoided and that cripples the poorest but those on higher incomes who do not need to spend all they earn suffer far less impost. Only the very selfish would think that was reasonable.
    Rae
    7th Jul 2020
    6:47pm
    A lot of GST can be avoided though through careful spending.
    Lookfar
    13th Jul 2020
    3:21pm
    true Youngagain, the rich do not pay GST, as their acountants write it off against their many and various chattel businesses, - usually illegally..
    Marty1
    7th Jul 2020
    12:16pm
    I’ve got an idea, why doesn’t the government reduce their large salaries and perks. Also we are over governed with local council, state government and federal government officials and all the outsourcing to private companies why do we need so many public servent’s.
    I’ve worked hard & paid my taxes & stamp duty a number of times when moving for work.
    Also if I can’t look after my self & have to move into a nursing home I will have to pay about $500,000 it’s a bloody joke when I’ve paid for private health insurance all my life. Maybe they have found a way to get blood out of a stone.
    4b2
    7th Jul 2020
    12:31pm
    A man after my own heart, we have another senior politician retiring at the end of the year. He will be able to draw his life long pension (usually in the six figure area) from the time he retires and pick up a nice salary from some other cushy job. Unlike the rest of us who have to wait to reach the eligible pension age, even to access our own super.
    Designated Driver
    7th Jul 2020
    12:32pm
    One of my rate items is something called "residential rates", apparently based on property size, which amounts to more than 50% of the bill.
    Water, sewerage & waste costs are separate.
    I doubt if they would want to double up with a similar State or Federal property tax.
    littlehelenb
    7th Jul 2020
    12:45pm
    Where will the money come from to pay, if we live solely on the Government pension week to week as it is - there is no extra to save.
    VicCherikoff
    7th Jul 2020
    12:55pm
    I have no problem with a Land tax if we also reduce the burden of so many useless politicians, break up the party system and get rid of either State or Local governments, or both.

    What we need to replace them is a blockchain voting system whereby Australians vote for specific issues and need to pass a thorough survey to prove knowledge on the issues up for mandate.

    Voters could even put up issues eg population reduction as a matter to be considered at elections.

    For example, read this: https://preview.tinyurl.com/humanfuturedotnet and you'll discover a host of issues for which we need urgent national direction, not equivocating, short-term, finite thinking, career politicians sweeping under the carpet to appease Big Business interests.
    dabi56
    7th Jul 2020
    1:03pm
    Land Tax, raising GST...The prospect of a nice retirement somewhere overseas seems to be becoming more and more enticing to me.
    Elizzy
    7th Jul 2020
    2:47pm
    Why would you necessarily escape those taxes by living in another country. All countries tax land and or property.
    Rae
    7th Jul 2020
    6:50pm
    Apparently NZ doesn't tax land or property.

    It seems our cohort is the go to for taxes. How about undoing the income tax cut after cut back to what we paid and call it even.
    cupoftea
    7th Jul 2020
    8:59pm
    Dabi56 you are so right I retire next year I will just wait and see what I am entitled to
    Buggsie
    7th Jul 2020
    1:07pm
    Letsd not forget that stamp duty is levied on lots of other goods and services besides purchasing a home. Foe example, if you insure your home you will pay 3 state based taxes in NSW - stamp duty, the emergency services levy and GST. While levied by the Federal government, GST is a state tax and all collected goes back into state revenue. In my case, out of a total premium of about $2,700 for home and contents insurance, more than $700 is levied as state taxes. To say nothing of car, boat etc insurance..... Will all stamp duty be abolished, or only that levied on home and land purchases? Will different rates of land tax be levied depending on where you live? If not, inequities may apply between different localities, with Sydney home owners paying far more than their regional and rural counterparts. Lets hope that the great brains in governments and the ever so efficient state public services are able to cope with the political and fairness issues involved in levying equitable land taxes across each state that makes this type of tax change.
    geordie
    7th Jul 2020
    1:22pm
    The laws of unintended consequences. Land tax,= much higher rent. Where does it stop. Its a forgone conclusion, more money to Government= More government. In a few years everyone will work for G'ment, they'll keep all the money and give everyone some pocket money for insidentals.
    Frist
    7th Jul 2020
    2:12pm
    As others have mentioned, we have already paid two lots of stamp duty on properties we have bought, plus the interest we have paid by making our mortgages larger. Therefore to be fair existing home owners should not pay the land tax until there has been a catch up on what they have already paid. I would imagine retirees would be working on the land tax coming out of their estate on their passing.
    CoogeeGuy
    7th Jul 2020
    2:20pm
    I would hope the respective governments are consulting their customer base regarding this major change. It will affect the younger generation when they retire in years to come, as many will not have much superannuation saved, and will most probably be on a pension. If they have to pay both body corporate fees, along with this new land tax, that’s their income spent. No money for food or bills. Are they going to be exempt, like they are for Council rates?
    .
    Plus I will certainly will not be paying land taxes on my current residential apartment, considering I’ve already paid stamp duty. I will fight it in court if I have to, or they can return my stamp duty plus interest :-)
    Rae
    7th Jul 2020
    6:52pm
    I don't think they can afford it now much less when retired. They could be up for hundreds of thousands over the years. Makes buying a house unviable for all but the wealthy. That's probably the idea of it.
    CoogeeGuy
    7th Jul 2020
    2:20pm
    I would hope the respective governments are consulting their customer base regarding this major change. It will affect the younger generation when they retire in years to come, as many will not have much superannuation saved, and will most probably be on a pension. If they have to pay both body corporate fees, along with this new land tax, that’s their income spent. No money for food or bills. Are they going to be exempt, like they are for Council rates?
    .
    Plus I will certainly will not be paying land taxes on my current residential apartment, considering I’ve already paid stamp duty. I will fight it in court if I have to, or they can return my stamp duty plus interest :-)
    Olddog
    7th Jul 2020
    2:25pm
    There is no stamp duty in Victoria for pensioners downsizing.
    Elizzy
    7th Jul 2020
    2:49pm
    And all land tax would go to build health, education and housing for indigenous Australians whose land it is. Only logical, yes?
    Argus
    7th Jul 2020
    3:01pm
    Logical if you happen to be an idiot.
    NoFreeLunch
    7th Jul 2020
    3:07pm
    You are kidding of course??
    Free health, education both secondary and tertiary and residential benefits are already on the cards. You can use your tax to pay for more Indigenous benefits. When do the hand outs stop?Governments ( both Parties)have used our taxes for the benefits of all citizens of this Country of which we have all at one time or other paid tax.
    NoFreeLunch
    7th Jul 2020
    3:12pm
    Mmm..Argus..consisely put.
    Captain
    7th Jul 2020
    3:37pm
    For the last 100 years successive Governments have spent many millions of dollars annually on indigenous welfare with the same result - no advancement whatsoever.

    Perhaps the indigenous need to get together, decide what they want and then negotiate with the rest of us Australians, and keep the politicans out of it. All the politicans do is more of the same garbage with our taxes.
    Puff
    7th Jul 2020
    4:40pm
    If you have paid stamp duty then no need to pay land tax. Double dipping.
    usually silent
    7th Jul 2020
    5:16pm
    If this tax is charged to home owners who have already paid stamp duty on their home it is very unfair. If I had to pay this land tax, I would become one of the homeless as I am unemployed and when the jobseeker allowance returns to the pre covid 19 level I will not be able to keep my unit with an added expense. I used to spend most of the allowance paying body corporate and council rates. A new land tax will be the straw that breaks this camel's back.
    Old Fella
    7th Jul 2020
    5:23pm
    Curious! Will the land tax be consistent, that is, is a quarter acre block in 'Woop Woop' going to be charged at a rate similar to the quarter acre in an already developed area or that similar quarter acre of dirt on top of the hill? . Stamp duty is a one off charge, based on a specific purchase value ; will increased land value, annually adjusted by CPI or market incremental values prove a never ending inflation living cost. Charging and costing everyone much more than any current one off Stamp duty outlay. Yes of course it will. I see just another wedge between private ownership, personal growth and identity vs suppression of individual personal identity by imposing State property ownership and increasing tax revenue. Lets call it the new Democratic Communism that exists for absolute State owned property , repeatedly paid for over and over again by the tenant population.
    geordie
    8th Jul 2020
    7:26am
    I totally agree mate.
    robmur
    7th Jul 2020
    5:32pm
    Stamp duty is a state tax. GST is a federal tax. What Howard said had no relationship to the stamp duty taxes each state government implemented. State governments chose to ignore the idea that GST would replace stamp duty. I'm TOTALLY AGAINST both land and stamp duty taxes. As a pensioner living in Victoria, we didn't have to pay stamp duty on our new home when we down sized in 2012. But of course, we pay our fair share of council rates now. Why should I have to pay a land tax every year? A land tax forever would surely be more expensive than a one off stamp duty. Many are against a rise in the GST. What is required is for both the federal government and the state governments to agree on a cross the board GST and for the state governments to abolish both stamp duty and land tax. GST may not go up as quickly as stamp duty and land tax might do each year. I know it is a stupid thing to say, but all governments must be fair in deciding how mush revenue they need, and the GST must be returned to each state according to the population of each, not some crazy, artificial formula that has no bearing on the size of the population of each state.
    Rae
    7th Jul 2020
    6:19pm
    A land tax has the potential to send the economy into free fall. I bet they do it too.
    Rae
    7th Jul 2020
    6:19pm
    A land tax has the potential to send the economy into free fall. I bet they do it too.
    Eddy
    7th Jul 2020
    6:42pm
    Whatever it is we will bear it. Nothing in life is more certain than death and taxes.
    Frist
    7th Jul 2020
    7:53pm
    Another concern is that we are moving into a situation in which a "reverse mortgage" will be required to finance your last years. Or like rates not paid it will be added to your estate. This is really bad for my children who have just got into the property market with a mortgage in real terms far higher than what I have ever experienced, without the benefit of rising wages. I would be hoping to pass down the value of my property on my death to my children to relieve their burden. I can see this not happening, so the next generation are really going to be crunched.
    cupoftea
    7th Jul 2020
    9:06pm
    We must keep the peasants broke
    Hasbeen
    7th Jul 2020
    9:29pm
    Any party that thinks it can introduce a land tax on people who have paid stamp duty on their properties, & GET RE-ELECTED, are bloody idiots.
    geordie
    8th Jul 2020
    7:23am
    Has anyone ever worked out exactly what percentage of our income eventually goes to Tax.
    Income tax, hospital levy, GST, Road tax (registration), fuel tax, Rates, Stamp tax etc, etc, etc, et infinitum. I pay almost 40% of my initial income then taxed on whats left. Its bedlam and almost criminal.
    Priscilla
    8th Jul 2020
    10:48am
    So having already paid stamp duty you now have to pay land tax as well. Ripped off again! If land tax is going to be so expensive maybe people will be put off from buying a home anyway. Just substituting one tax for another!
    fish head
    8th Jul 2020
    6:05pm
    Stop trying to push the elderly out of their homes.If we wanted to "downsize" we would. It has not happened because not everybody wants to live in a matchbox miles away from our neighbourhood support systems. People fight tooth and nail to remain in familiar surroundings for as long as their health permits.They feel safe and comfortable in known surroundings and can live their life on their terms. No matter how well meaning, shared space requires compromise and living by rules with which you may not wholeheartedly approve. Why must we, who have successfully navigated Society, be pushed to the side by the upcoming generations' rush to take over? It is not on. Demographers shove off. You'll get our space soon enough.
    Old B.
    8th Jul 2020
    11:32pm
    As I remember John Howard misjudged just how much the GST was going to bring in and finished up with a massive surplice which they sat on until Kevin Rudd gave it out during the recession. If the GST gave them such a large surplice then he should have given the states more so all their taxes such as the land tax could be wiped. wipe land tax and leave Gst alone too. Revenue from GST increases with inflation. They should be looking at pollies entitlements if they want to save some money.
    PlanB
    11th Jul 2020
    12:25pm
    Howard never misjudged -- he was just as cutting as a ---- --- rat!
    PlanB
    11th Jul 2020
    12:21pm
    Paid by ALL home owners!!!???

    Like hel I have paid my stamp duty --
    Grey
    12th Jul 2020
    4:05pm
    I have worked in the public sector local, state Federal. There are many avenues to save let alone politicians who retire on board of Directors.
    1 Defense. Do we need that many subs, planes etc. We already suck up to the US (and we should). WE will stand up to China but not unnecessarily poke the Dragon in the eye.
    2. WE should not support economic refugees which is what most of them are
    3. We penalise the dole bludgers once this pandaemic is over.
    4. The salaries are perks of civil servants are too high, they claim this is necessary or they move to the private sector. When Jeff Kennet started n reforms, the local council chiefs rubbed their hands in glee. Instead of Town clerks they becane CEOs, and it flowed downwards. The cars were upgraded.The young assistants to the CEO had a choice of cars, they had none before.

    I can go on and on
    PlanB
    16th Jul 2020
    12:56pm
    We don't need all these subs/planes etc -- especially when they are years out of date when we ordered them!

    Also, they are made in other counties -- do we believe IF there is a war that these counties will not have spy equipment on these!? We need the jobs to make OUR OWN and also the independence!
    Frist
    13th Jul 2020
    3:47pm
    I find it very strange that if you have any income or wealth you have a moral obligation it seems to have it distributed to everyone else? I do believe that we all benefit when there is some distribution of wealth via taxes for the services we receive. But why don’t we get concerned about those who are quite happy to receive welfare all their life and make no contribution to the system yet feel entitled to be well looked after by everyone else? Everyone should be able to make some contribution for mutual social benefit. We should not have a system in which one group are “obliged” to have anything they have redistributed to everyone else, and others are considered to be worthy to receive and are considered hard done by if they don’t get enough. I can see land tax meaning that you can never fully retire as you will need some income to service standing costs or you will have to reverse mortgage your home, which I believe they are really wanting to happen. This will be achieved indirectly I fear.


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