I was reading a newspaper article a month or so ago about the stands each political party was taking on various issues. One of them was stamp duty for first home buyers. Both major partiews had abolishing stamp duty for first home buyers as a policy.
As a soon to be first home buyer, I was quite happy about this.
I have three questions.
1. Has it happened yet?
2. If not, when?
3. Generally, I gather that there are two forms of stamp duty payable: stamp duty on the mortgage (up to 0.4% of the amount borrowed) and stamp duty on the contract and transfer (up to 5.5% of the purchase price or market value of your property, whichever is higher). Which one is the government talking about abolishing?
I can easily see them choosing to abolish the cheaper one, so that they can crow “We abolished stamp duty for first home buyers! Aren’t we great!” and thereby dishonestly getting votes out of it.
Not dead yet.
Lo there do I see my father.
Lo there do I see my mother and my sisters and my brothers.
Lo there do I see the line of my people back to the beginning.
Lo they do call to me, they bid me take my place among them.
In the halls of Valhalla.
Where the brave may live forever.I would say wouldn’t happen until ‘sometime after’ the next election. then it has to go through parliament etc. etc.
Besides that, stamp duty is a state tax, so it will be interesting if they can force the states hands. Plus, it was supposed to be abolished (like it was on shares) when the GST came in.
Cheers
MelIn WA, there’s a conessional rate of stamp duty rebate for home buyers (not just your first home). If you’re a first home buyer, you may also be eligible for a $500 rebate (not to be confused with the Federal Government’s $7,000 first home owner’s grant).
There’s also a concessional rate of stamp duty on mortgages for home buyers.
Given that stamp duty is one of the biggest (if not the biggest) revenue raisers for State governments, I wouldn’t hold my breath on any abolition of stamp duty, or significant reduction, unless it’s replaced by another revenue source.
Cheers
Elysium-MDIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
And in fact, Bob Carr was unhappy that the Federal Government are ‘redistributing’ the GST, so NSW will get less. I thought they were supposed to get back what they raised, but it’s not to be.
Costello, or somebody in the Feds told him to increase stamp duty to make up the difference!! So much for it disappearing! Ha.
Cheers
MelThe distribution of the GST (ie the formula) was devised by the states, so they can’tr complain now. If they are, its just politics.
James
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