Why The Australian Property Market Is A Joke

Originally posted by Sweetsound ↑

Hi KP,

From my limited understanding, QLD will apply this new strategy for those whose principal residence is registered as being in QLD. Apparently the timing of the tax revenue collection is different in different states which may provide some issues and one can only assume that the current VG value would be applied from each external state property and then somehow apportioned to tie in with the rates applicable within QLD??

It also seems that the onus is on property holders to advise the QLD govt of their real estate holdings in other states as individual states only handle their own individual real estate transactions. If that is the case, wonder who will comply and what happens to those who do not??

Another thing that seems to be clear is that some are trying to offload properties prior to the new tax timing so as to avoid paying - can't say I blame them.

Given that there always are state taxes to pay at the time of purchase in any state, it seems rather a draconian measure to rake in more from those already suffering as a result of govt policies - particularly as each state has differing rules and regulations. Some people obviously were mitigating paying these land taxes by purchasing outside from their own state but given the distances from different properties, this will simply add more woes. As interest rates rise, it adds even further pressure to those affected and with more and more properties coming on the market, will further suppress real estate values - mind you, in major cities those recent values are way over the top.

As always, there will be some winners, some losers but govts on the whole never lose - how can they, it isn't their money they're playing with, it's ours (or was, before they decided to get some more). But then of course, there are always those who are also very greedy and those who will simply pass on additional costs to renters - as if rents weren't high enough and scarce as it is around the country. AIMO

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Hi SS
My thought is :-
A person owns multiple properties in Qld. So pays tax on all regardless of where they are
Same owner buys a property in NSW but as it is only one property it is under the threshold for NSW, so no tax
Now as Qld has set the precedent (that it is now added to his total for the calculation) what is to stop NSW from doing the same

IE: the properties that the person owns in Qld are added to his tally so he does not come under the threshold in NSW any more, so has to pay tax now in NSW as well on that single property

Therefore he is paying tax in NSW and Qld on the same property