On 12 May, 2010 the Minister for Lands, Tony Kelly, confirmed a new tax would begin on 1 July, 2010 on the sale of property. This tax will be levied on the buyer as an additional cost when purchasing property.
Mr. Kelly said the introduction of new security measures was to ensure document security to protect property owners from the growing risk of property fraud.
“The new security measures will strengthen the land title examination processes and will include an additional six authentication measures such as a new Watermark and a Security trust seal tailored specifically for Certificates of Title”.
The new land transfer charge will be imposed on the sale of residential and commercial property worth more than $500,000.
This is estimated to create an additional $90 million in annual revenue for the NSW State Government.
The tax will be calculated as follows:
- sale amount between $500,000 and $1,000,000 will attract a tax rate of 0.20%
- the charge then increases to 0.25 % for the portion of the sale above $1,000,000.
The median Sydney house price is about $600,000, which would attract a charge of $200.
State Comparison
Based on a sale worth $750,000, only Western Australia charged a lower ”registration charge” of $250, compared with $500 proposed in NSW. In Victoria, the figure is $1,350, in Queensland it is $1,623.30 and in South Australia it is $4,759.
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Absolutely ludicrous, an additional $90 million to create a new watermark and security trust seal?
To top it off, it was announced on the day the Budget took centre stage so that attention would be diverted that way.
Can’t the government just be upfront with us?
The Government has run out of money. We are running on empty.Karl Marx would be proud!!!!