• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 6 of 6
  1. #1
    Join Date
    Jul 2003
    Location
    Kapiti in New Zealand
    Posts
    4,031

    Default Iemma abolishes vendor tax

    Hi all - news

    NEW NSW Premier Morris Iemma has abolished the controversial property vendor tax as of today.
    Mr Iemma made the announcement after being formally elected as the state's 40th premier at a Labor caucus meeting today.

    Mr Iemma also said he will become NSW's next treasurer when he is sworn in to both jobs tomorrow. He said the new law would not be retrospective.

    "I announce today that the vendor duty will be abolished," Mr Iemma told reporters.

    "(It will be) effective for all contracts exchanged on or after today."

    "It's not a decision that I have taken lightly and it will have an impact on revenues."

    Senior Labor figures had said Mr Iemma would roll back controversial property and poker machine taxes as part of his pitch for the state's top job.

    Mr Iemma said the vendor duty was introduced in a very different property market and times had changed.

    "A market that was stronger, but times have changed," he said.

    "In the current market conditions, vendor duty is a brake on economic activity.

    "The Property Council and Access Economics have identified that the removal of the vendor duty will stimulate economic activity, it will have a positive psychological effect on business.

    "Thousands of NSW residents have an investment property as part of their nest egg.

    "I want NSW to be the state where investment is rewarded, not just the multi-million dollar investors, but the investors in my own electorate of Punchbowl, Lakemba and Wiley Park or investors in Kiama, Hornsby, Parkes and Penrith, Sutherland, Dorrigo and Deniliquin."

    The 2.25 per cent vendor duty, introduced last year by then treasurer Michael Egan on the sale of investment properties, has been criticised by investors, unions and the real estate and building industries, among others.

    Earlier today, Mr Iemma was elected unopposed as leader of the NSW Parliamentary Labor Party today.

    "There was only one nomination for premier - that nomination was Morris Iemma," Labor's caucus returning officer Matt Brown told reporters.

    "I was very pleased to announce him as leader of our caucus and the 40th premier of New South Wales."

    The vote came just hours after state Treasurer and Deputy Premier Andrew Refshauge announced he was to quit parliament next week.

    Dr Refshauge said it was time to move on, but Mr Carr's retirement was a factor.

    "You might ask why didn't I make this decision earlier," Dr Refshauge said.

    "I think it is fair enough to say that when Bob decided that he would leave I responded as I suppose any medical practitioner would, I took an analytical approach to it."

    Dr Refshauge, who also held the state development and Aboriginal affairs portfolios, was Bob Carr's loyal deputy for 17 years.

    He was appointed treasurer in January following the retirement of Michael Egan.

    Before entering parliament as the member for Marrickville in 1983, Dr Refshauge, 56, worked as a doctor in Aboriginal health and co-founded the Doctors Reform Society.

    Dr Refshauge, a member of Labor's Left faction, said: "Since (Mr Carr's resignation), I have been able to see what my feelings are, my thoughts and you might have noticed it was a very sunny weekend as well.

    "I think the time is right," he said.

    "Bob and I got in (to parliament) on the same day. Maybe our replacement should come in on the same day too."

    Dr Refshauge told reporters he made the decision last night and then informed Mr Iemma.

    He wished Mr Iemma the best of luck.

    News Source

    Cheers

    Marc
    Free business resources - www.BusinessBlogsHub.com

  2. #2
    Join Date
    Aug 2005
    Location
    Melbourne
    Posts
    18

    Default

    Bob Carr left his successor a political party facing little chance of re-election. I think it was probably on the agenda already to remove this tax, but he wanted to give his successor something to appease the electorate with.

    When the vendor tax was established there was a rush sell properties before it became effective. The vendor tax is basically a tax on the sale of the property. It's not based on the capital gains, but the sale price.

    The rush of sales dropped the market somewhat. When the tax became effective it meant that people were more unwilling to sell stagnating the market, which has had a flow on effect to increased rents. Many investors have been able to increase rents but 10% or more in the last year. Some of this is also due to the changes to land tax.

    Removing this tax will most likely stimulate the NSW market as there will be lower costs involved in selling property. This might mean some bargins initially, but the overall effect will probably be some increased trading of property which will probably lead to longer term growth.

    These comments are opinions based on observations over the last 12 months. They should not be taken as financial advice.

  3. #3
    Join Date
    Jul 2003
    Location
    Kapiti in New Zealand
    Posts
    4,031

    Default

    Hello PT_Bear,

    Interesting! So the tax is only in the NSW state? I have not heard of it in VIC. I wonder if the other states have thought about introducing this tax...

    Cheers

    Marc
    Free business resources - www.BusinessBlogsHub.com

  4. #4
    Join Date
    Aug 2005
    Location
    Melbourne
    Posts
    18

    Default

    I should clarify, the vendor tax was only applicable in NSW. No other states have introduced this tax.

    It's worth mentioning that stamp duties and land tax are a state tax in Australia, not a federal tax and thus the amounts do vary from state to state.

  5. #5
    Join Date
    Jul 2003
    Location
    Kapiti in New Zealand
    Posts
    4,031

    Default

    Hey PT_Bear,

    Just as a bit of a side note - a member in another post had this to say

    "We aren't investing in Aust at this stage as all our equity is in NZ and the Oz banks won't lend on equity in overseas property - we've looked at that a few times just in case their stance ever changes.
    What are your thoughts on this - is this true?

    Cheers

    Marc
    Free business resources - www.BusinessBlogsHub.com

  6. #6
    Join Date
    Aug 2005
    Location
    Melbourne
    Posts
    18

    Default

    If a lender needs to recover money from a security property overseas, it's very difficult, messy and expensive.

    The easiest way to invest overseas it to release equtiy for cash, then move that cash overseas and leave it there.


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. REA rips off Vendor
    By Frezzinghot in forum General (NZ)
    Replies: 13
    Last Post: 25-04-2016, 09:56 AM
  2. Vendor finance?
    By PTWhatAGreatForum in forum Property Investment (NZ)
    Replies: 7
    Last Post: 09-08-2015, 06:33 PM
  3. Vendor finance
    By bling in forum Finance, legal and tax (NZ)
    Replies: 21
    Last Post: 20-10-2014, 05:36 PM
  4. 100% Vendor Finance and...?
    By ben777 in forum Property Investment (NZ)
    Replies: 21
    Last Post: 22-07-2009, 12:50 AM
  5. What if the vendor is not GST-registered
    By fudosan in forum Commercial Property (NZ)
    Replies: 13
    Last Post: 23-09-2008, 05:07 PM
  6. From a Vendor's point of view
    By essence in forum Regions News (NZ)
    Replies: 4
    Last Post: 13-05-2008, 01:06 PM
  7. NSW abolishes mortgage duty
    By muppet in forum Property Investment (Oz)
    Replies: 0
    Last Post: 03-09-2007, 08:28 AM
  8. Vendor finance
    By rdpd3 in forum Finance, legal and tax (NZ)
    Replies: 5
    Last Post: 01-06-2006, 11:36 AM
  9. Vendor Finance
    By simoncoles in forum Property Investment (NZ)
    Replies: 5
    Last Post: 05-02-2006, 09:40 AM
  10. what are your thoughts on Dolf de Roos
    By Kristine in forum Property Investment (NZ)
    Replies: 40
    Last Post: 16-02-2004, 10:05 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •