The Real Estate Institute of Victoria has called on both the State and Federal Governments to remove the tax on tax rort of stamp duty being levied on GST in commercial real estate transactions.
According to REIV, the current stamp duty laws allow the state government to charge stamp duty on GST, resulting in a tax on tax situation, to the detriment of property buyers.
REIV chief executive Enzo Raimondo said the GST should be confined to a tax on goods and services only.
“It was not intended to be a tax on tax,” he said.
“There is no rational reason why this is the case, it is an anomaly that adds unnecessary costs to commercial and industrial property transactions.”
Mr Raimondo said REIV was frustrated by the fact the government has failed to take any action to rectify the anomaly since it was first raised in 1999.
“This year’s state election and 2011 Federal Tax Summit provide an opportunity to have this issue addressed,” Mr Raimondo said.