Housing Industry Association calls on the first government to abolish stamp duty
Sydney Today, April 4, Australian Eastern Time, HIA and the Australian Property Council unanimously called on the ACT government to abolish the stamp duty policy for first home buyers to help the Canberra construction industry recover.
The Housing Industry Association (HIA) called on the government to abolish the stamp duty imposed on first home buyers to avoid the prediction that the construction level of residential properties will fall by 30% this year comes true. In his submission of the ACT 2012-13 budget, Neil Evans, CEO of HIA ACT, pointed out that the estimated cost of the government to implement this measure is 4920 million Australian dollars, but the tax cuts this time can help the construction industry "compete with market demand." Synchronization, to prevent market imbalances.
Neil Evans said: "The stamp duty on residential real estate is the most ineffective of all taxes. As a transaction tax, the stamp duty actually brings considerable deadweight losses and also leads to the invalid use of residential real estate supplies. This recommendation is based on 2011 The fact that the construction of residential real estate decreased by 28.6% annually.
The association pointed out that the government can receive nearly A$2060 million in stamp duty income as compensation because some home buyers will sell existing properties to buy larger new properties that appear on the market. The report submitted also pointed out that the government may recover about $19 billion in other goods and services tax revenue.
Evans said: "This means that the actual loss of the ACT government is less than A$1000 million. The economic value created by the addition of new buildings is A$24.77 billion." However, ACT's Finance Minister Andrew Barr pointed out that the cost calculation submitted by HIA A more detailed review is needed. Although there is room for tax reform, the stamp duty of provincial capitals will not be abolished.
Andrew Barr said: "I can say with certainty that these will not appear in this year's budget, but we will adopt some of their opinions. Some of the measures in the budget will definitely be used for tax reform.
The Australian Property Council of ACT also submitted a bill to abolish stamp duty. In its 2012-13 bill, the council pointed out that stamp duty inhibits the growth of economic activity and reduces the return on property investment of Australian pensions. The council called for the abolition of this "authoritarian, complex, inefficient and unfair" taxation. (Wendy)
English version: http://smh.domain.com.au/real-estate-news/hia-wants-act-govt-to-take-50m-hit-20120409-1wlhq.html