The NSW Government is set to introduce a new property tax on transfers above $500,000. The tax will be added to the existing taxes on transfers and is expected to be 0.2% on property transfers between $500,000 and $1million and will be 0.25% above $1million.
The tax has passed through the NSW upper house late yesterday and it is expected that the new tax will come into effect around July this year.
On a $750,000 purchase or transfer, the new tax will be approx $500 in addition to all other stamp duty and existing charges.
The only positive is that the new tax will not apply to property transfers of value below $500,000. However, with a Sydney medium house price in March 2010 of approx $595,000 according to Australian Property Monitors, it is likely that the new tax will affect many NSW buyers in the future.
For further details, have a look at this recent article
http://www.news.com.au/money/property/premiers-sneaky-tax-on-property/story-e6frfmd0-1225865832122
Stay tuned for the effective commencement date. Buyers should factor these new charges in their own budgets when they look to buy in NSW.
Comments by
Dean Carver - Solicitor
Carver Lawyers (Sydney)
Ph: (02) 9773 4550
