Govt accused of property tax rort

Govt accused of property tax rort

by 0 comments

Belinda Luc

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.

Belinda Luc

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.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent's commitment to clientele built him a 25k-strong client base

In this episode of Secrets of the Top 100 Agents, host Tim Nearly talks to RT Edgar’s Glen Coutinho who ranked number six in this year’...

View all podcasts

How effective are testimonials as a marketing tool?

Not effective at all
Somewhat effective
Very effective
They are the most effective tool there is
Do you have an industry update?