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Land tax the answer to 'nefarious' stamp duties: Economists

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Australian Broker | 05 Dec 2013, 07:00 AM Agree 0
As calls to abolish stamp duty grow stronger in the industry, economists are pushing for a shift to land taxes to cover the shortfall
  • John C | 05 Dec 2013, 09:06 AM Agree 0
    Could not agree more. Time for how the taxation system to be restructured to be more attune with the times. Current system is killing the economy.
  • Giles | 05 Dec 2013, 12:44 PM Agree 0
    I recall hearing promises from the Govt of the time that the introduction of the 10% GST would result in Stamp Duty and other regressive state taxes being abolished.

    Property owners already are taxed enough with out of control local council rate increases, and now the Fire Services levy. Building insurance costs have skyrocketed. The proponents of high population growth claim it grows our economy and everyone benefits. All I see on the news each night is reports of our infrastructure failing across the board, and no money to maintain the infrastructure let alone grow the capacity. Now the economists are claiming that our standard of living will have to fall to compensate.

    Since it has become obvious that the states need more tax, then the fairest way is to increase the GST rate, say to 12.5%. Hiking up Land Tax or worse still, applying Land Tax to the family home will just make our expensive housing even more out of reach (for tenants, retirees, families etc). As house prices rise, so does the rate for land tax so what didn't seem much cost at the beginning ends up being hideously expensive later on when we can't do anything about it, an if we are retired then we can't afford it.

    Remember the promises of Petrol taxes to be exclusively spent on our roads and public transport. What rubbish. Now we are having to pay tolls to use our roads.

    Beware of new taxes, especially taxes that kick in at certain thresholds.

    The GST was meant to solve all of these problems.
  • John C | 05 Dec 2013, 04:19 PM Agree 0
    Giles, it was & did. In fact the country was comfortably in the black. Thanks to the irresponsibility of the former government we have an Irish/Greek financial deficit so the new government has to find a way to repay this debt. I don't envy the task of the incumbent government.
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