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Mini budget 2008

Discussion in 'The Economy' started by Jacque, 11th Nov, 2008.

  1. Jacque

    Jacque Team InvestEd

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    Some changes direct from the osr site:

    First Home Owner Grant
    Effective from 11 November 2008 a NSW New Home Buyers Supplement of $3,000 will be added to the existing $7,000 grant for eligible First Home Owner Grant applicants building a new home or buying a newly constructed home. The $3,000 Supplement will be available for 12 months (11 November 2008 to 10 November 2009 inclusive), at which time it will be reviewed in the context of the property market. This Supplement is in addition to the $14,000 provided under the Commonwealth’s First Home Owner Boost scheme. This will give eligible First Home Owner Grant applicants building a new home or buying a newly constructed home a total of $24,000.
    Effective from 1 July 2009 (subject to Federal Government approval) the First Home Owner Grant and NSW New Home Buyers Supplement will be capped and only be available for properties valued up to $750,000.


    Land tax
    Effective from the 2009 land tax year a new premium land tax marginal rate of 2 per cent will apply to land tax payers with total taxable land holdings above $2.25 million. The land holding below the premium threshold will remain subject to the 1.6 per cent rate and receive the 2009 tax free threshold of $368,000. The premium threshold will be indexed for the 2010 and following tax years. The premium marginal rate does not apply to exempt land such as principal place of residence or primary production land.

    Duties
    Nominal duties
    Nominal duty of either $2 or $10 is payable on a range of documents, for example, duplicates of contracts on which ad valorem duty has been paid, collateral mortgages and transfers of property pursuant to a Will. Effective from 1 January 2009 these duties will be increased from $2 to $10 and from $10 to $50 as the case may be. In addition, the duty on the execution of certain trust documents will be increased from $200 to $500 from the same date
     
  2. qqwertyuiop2000

    qqwertyuiop2000 Member

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    The budget was an absolute joke, have these people got any clue about what do to in a slow down, increasing taxes is SUCH a smart idea. :mad:
     
  3. AsxBroker

    AsxBroker Well-Known Member

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    Labor giveth with the Federal govt and taketh with the State govt...
     
  4. qqwertyuiop2000

    qqwertyuiop2000 Member

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    Thats exactly the problem, the federal govt will probably have to increase fiscal spending to counteract this.
     
  5. Billv

    Billv Getting there

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    :confused:
    Unless you are filthy rich the increase in the land tax won't affect you
    and if you were that rich you wouldn't worry about land tax anyway
     
  6. MrDarcy

    MrDarcy Well-Known Member

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    Sure? How about the businesses that now have increased costs, who pays them? The consumer and that is everyone.


    Really? It doesn't matter how "rich" you are, when the yield goes down on your investment it effects the whole quality of the investment. That would make me worry.

    What a joke, the tax and the government. And no, this increase will not effect me directly, but we will all suffer for the reasons above AND the impact as a whole for NSW property .
     
  7. Billv

    Billv Getting there

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    MrDarcy

    I understand where you are coming from, but I still don't think it's something we should worry about.

    I agree with you that this government is not doing the right thing increasing land tax but at the same time they have to collect money to pay for all the state's expenses.

    I don't vote labor but as with every government I believe they should be given a chance to prove themselves and if they aren't successful they will be shown the door at election time.

    I am actually watching carefully the Rudd government and how they will handle this financial crisis. This is a test of their ability to govern for all people including the people of NSW who brought them to power.
    For a long time now the people of NSW are not getting enough of their taxes back and this is the time to fix this.

    IMHO
     
  8. Chris C

    Chris C Well-Known Member

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    Taxes aren't necessarily a bad thing (just thought I'd play devil's advocate).

    My understanding is that increased taxes on the rich could actually better stimulate an economy as long as the increase in government revenues resulting from the increased taxes would then be spent on new infrastructure, projects, services etc acting as a direct stimulus to the economy.

    Now I can appreciate that many would say that the rich would have spent their money as well which would have acted as a stimulus to the economy, but the reality is when most of us earn money (especially people on these forums) we don't spend all of it. We spend some of it, and save the rest. Those savings, whilst providing as capital for investment, does not boost the economy. So giving the money to government tends to better ensure that the money is actually "spent". This is especially true of the rich (ie those that own more than $2.25 million) who are much more likely to save higher proportions of their earnings, in addition to making many luxury import based purchases, than their poorer counter parts.

    I'm also aware that high taxes act to reduce incentive for individuals to increase their income/wealth, albeit in property, but given the current housing bubble situation there may also be a good argument for increasing taxes on property to give further disincentive to invest in property to reduce some of the upward pressures on housing prices. Obviously these tax increases are going to fall well short of correcting a very large housing price bubble, but IMHO its a lot better policy than doubling the FHOG.
     
  9. Billv

    Billv Getting there

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    Land tax is also a good way to tax those individuals.
    Many of them can't be caught by income tax anyway because of their elaborate accounting schemes
     
  10. qqwertyuiop2000

    qqwertyuiop2000 Member

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