The Territory’s property industry continues to carry an unreasonable taxation burden, with conveyancing duty increases on properties valued over $1 million.
ACT Treasurer Andrew Barr handed down his first Budget on Tuesday, 5 June, introducing the first steps in an ambitious tax reform program which will see major changes intended to lead to a fairer, simpler and more efficient tax system for the Territory.
The Property Council supports the direction of the tax reform program, agreeing with government that major own source taxes in the ACT are volatile, unfair and inefficient, and therefore unsustainable in the long term.
We have been particularly supportive of the Government’s agreement in principle to the abolition of duty on conveyances, and to the Government’s agreement to adopt a broad-based land tax as a base for revenue replacement.
However, we have been sharply critical about reform in year one which sees a slug to the commercial property sector with conveyancing duties increasing from 6.75 per cent to 7.25 per cent on properties valued at over $1 million. Discussions with the Government continue over this issue.
Stamp duty update
Following lobbying by the Property Council, we have received advice from ACT Treasury that “all deals currently being negotiated/structured should contact ACT Revenue for grandfathering, which will be granted”. For further information please contact Catherine Carter.
Click here to read our Budget Briefing
Click here for our media release