NSW Government’s horror Housing Tax

We’ve lived in our house for 55 years. Most home owners will live in their “forever homes” for that sort of time.

For a first home buyer where the land is worth $1.5m the current NSW stamp duty is around $67,500 paid over a 30 year mortgage @ $2,250  year.

The rate could easily be halved to make it $34,000 .

Under the government proposal, annual Tax on Housing for a first home buyer of a property with $1.5m of land would be: $400 plus .3% of $1.5m ie $4,500 = $4900 a year. Over 55 years they would pay about $270,000, or 4 times as much as they do now.

What a clever political strategy, painted as lowering the cost of housing by increasing it.

For richer people buying a home with a land content of $3m, stamp duty would still only be $150,000, paid over their mortgage term. $120,000 less!

The Housing Tax is heavily biased against younger, poorer people in favour of richer older people.

Good for government, bad for voters. A real win for property developers as the initial home cost plus tax is lower and those buyers will probably not think of the nearly $5,000 a year in tax they will be paying for life on top of their mortgage.

Any time you don’t like what government does, you can, by Votergram, tell every Member of Parliament that you are not happy and what they should do. After all, government works for you, is elected by you and paid by you. But to do what you want, every MP needs to know what that is and why. That is because in parliament, the majority vote rules. email votergram@votergrams.com.au for information or help.

Greg Bloomfield, retired FCA, CPA