ACT home buyers to save cash from tax changes
Home buyers in the ACT are forking out less on their new property with the state government's ...
Home buyers in the ACT are forking out less on their new property with the state government's taxation reform slashing stamp duty rates.
Under the changes, which are part of the government's five-year plan to abolish stamp duty completely, properties valued below $1.2 million are subject to reduced rates of the tax.
In the last financial year, home buyers of 97 per cent of properties sold in the territory saved cash through the reforms, according to results from the Legislative Assembly's Estimates Committee.
Announced in the 2012-13 ACT budget, the taxation changes meant that from June 6, people buying a house in the territory would face lower rates.
This news could attract the interest of those considering purchasing an investment property, with increased house affordability set to continue until at least 2017.
ACT members of the legislative assembly Andrew Barr said stamp duty was an unnecessary tax, which impacted on a person's financial affordability to purchase a home.
A person purchasing a $300,000 home will now be subject to almost $1,000 less in stamp duty which would increase to more than $4,000 in 2016.
The stamp duty changes are part of the territory's tax reforms which also include, reduced payroll tax, lowered land tax for some properties and the removal of commercial land tax and tax on insurance premiums.