NSW Opposition Treasury spokesman Daniel Mookhey said Perrottet should eliminate the plans, which would only impose more taxes on NSW families.
“I don’t know where Mr. Perrottet thinks working families can find the money to pay him an annual land tax on his house that lasts forever,” Mookhey said.
“If Mr. Perrottet thinks families have more than $ 2,000 sitting ready to pay him a land tax, then he’s out of touch.”
When asked if Labor had an alternative policy to address the challenge of home ownership in NSW, Mookhey said the opposition would present its plan ahead of the March 2023 state election.
The decision to switch to a land tax would be permanently blocked on the property, so future owners would have to pay the land tax if they did an earlier one, which would eventually lead to the phasing out of the land. stamp duty throughout NSW.
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The NSW Treasury has estimated that an optional annual tax would raise approximately 20% less revenue, equivalent to a projected deficit of about $ 2.5 billion a year.
But Perrottet said the post-pandemic era was the right time for governments to pursue tough reform.
“For too long in this country we haven’t had the reforms we had under the Keating era and the Howard era, they’ve all been sitting in the basket too hard,” he said.
“This is the opportunity right now when we come out of a pandemic of one every 100 years; there are economic challenges approaching; we know we are in a higher inflationary environment and we need to keep reforming ourselves to unlock opportunities in the future “.
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Chalmers said he is open to a collaborative approach to addressing housing accessibility ahead of a meeting of state treasurers in Brisbane on July 22, at which reform options to boost the economy will be on. the agenda.
The executive director of the Sydney Committee, Gabriel Metcalf, said the phasing out of stamp duty was the most important reform the state government could embark on.
“All major studies on the tax structure identify it as a key opportunity,” Metcalf said.
“The problem with the stamp duty is that it is a tax to move home. It’s a discouragement for properties to make transactions, which means it’s harder for people to adjust to where they live based on things like changing family size or getting a new job. “
Revenue NSW data show that the government raised $ 12.2 billion from the land-related transfer tax over the 10 months to April 2022.
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