Rural Communities Hit Again
Better Business June/July 04
Rural Communities Hit Again
Details announced in the Carr Government's Mini Budget, have the potential
to rip the heart out of the NSW property market. NSW is now the only State in
Australia in which you are taxed for buying, owning, and selling an investment
property. Labor is penalising ordinary investors in order to plug the budget
black hole, created by its own financial mismanagement.
Impact on the price of property currently below $500,000;
Encourage investment interstate, particularly by small business operators and property investors in border regions such as the Tweed;
Discourage people from investing in property as part of their retirement plans;
Force up rents as land tax increases are passed on by landowners;
Disadvantage the many people who buy their first property as an investment because they cannot afford to live in it.
It's little wonder Bob Carr bought his investment property in New Zealand.
This new tax could lead to a significant exit of `Mum and Dad' investors
interstate, discourage small business and create thousands of new taxpayers.
These taxes will bring over 250,000 people into the land tax net for the very
first time. Those who will now be paying Stamp Duty on both the purchase and the
sale of their properties are not necessarily wealthy people.
These tax increases will ultimately hurt both investment property owners and the
people who rent their homes. The people who bear this tax are those least able
to afford it - and that is people who rent and who are trying to enter the
market for the first time.
While the Stamp Duty relief for first homebuyers is welcome, the overall impact
of the Mini Budget will be a deeply negative one for the State. The great tax
impost from new Stamp Duty provisions and the extension of land tax is on
Mr John Brogden has spoken with industry groups and received a large number of
complaints from taxpayers and says it is clear that the Mini Budget will:
In a statement Queensland Premier said, "The NSW Treasurer, Michael Egan, has
made Queensland an even more attractive place to invest and do business."
Why does the Carr Government continue to expect country residents to bear the
brunt of its mismanagement and when is the Premier going to become accountable
for over taxing NSW residents?
With the announcement of the axing of the Casino to Murwillumbah rail link and
the closure of Countrylink offices and now a further threat of State-wide
Countrylink services closures, rural and regional people have had enough. The
Government should be pouring funds into our regional road network and
Countrylink services and not cutting budgets.
The Coalition opposes all tax increases by the Carr Government, voting against
the tax increases. These tax increases amount to an extra $690 million in new
taxes on property investors in the first year alone.
The Coalition has a different approach and between now and the next election we
will detail our plan to provide real tax relief to the "Mums and Dads" who have
purchased an investment property.