A pledge by the NSW Coalition to axe the new ad valorem tax on property has been welcomed by the Property Council of Australia.
Coalition Leader Barry O’Farrell has today firmly committed the Coalition to abolishing the ad valorem tax if successful at the State election on March 26.
The NSW Executive Director of the Property Council, Glenn Byres, joined Mr O’Farrell for the announcement – having led the fight against the new property tax.
“Barry O’Farrell’s commitment to axe the property tax shows a clear understanding of the need to build a competitive tax base in NSW,” Mr Byres said.
“The tax cut will save the property sector $429 million over four years – and send a welcome signal to investors that NSW wants capital.
“The ad valorem tax was a tax on investment, project development and homebuyers.
“It was a sneaky tax that effectively represented a second wave of stamp duty.
“The tax applied to commercial property transfers, site acquisitions for new projects across the range of asset classes and homebuyers.
“We are pleased that Mr O’Farrell has been so responsive to industry concerns and used the election campaign to reinforce his commitment to abolish the tax.”
The ad valorem tax was introduced by the NSW Government in last year’s State Budget.
It applies at 0.2 percent on the transfer of property valued between $500,000 and $1 million – and 0.25 percent on the transfer of property valued above $1 million.
Media contact: Glenn Byres, NSW Executive Director, 0419 695 435.