It might not be directly related to income tax, but its the next best thing. State duties are those taxes levied by the state – payroll tax, stamp duty, transfer duty, land tax – and are based on transactions not profit.
Just recently The NSW government proposed in the 2011/2012 state budget to reduce the benefits allowed to first home owners. They still get the first home owners grant but the state government hopes to:
- eliminate the stamp duty exemption for second-hand homes.
- eliminate the mortgage duty exemption purchase of second-hand homes.
The message is – build! Keep the builders busy and the economy flowing and the housing shortage lower by building new houses. Don’t buy old houses as no government assistance will be provided.
Next time your child or yourself is thinking of buying their first home, contact us to check what will and will not apply to you. You may be surprised what has changed.
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