Click to Search
   MEMBER LOGIN Username    Password  Remember me Click to Login Forgotten password?  About REINSW  Contact Us   
:: Lastest News Backup
Click to print page
Transfer tax puts brake on investment: PCA
Released 7 January 2011

The ad valorem tax on property transfers may deter future investments in NSW, states a report by the Property Council of Australia (PCA).

Implemented in July 2010, the new tax charges a 0.2 percent fee on transfers between $500,000 and $1 million, and 0.25 percent fee on transfers above $1 million.

“NSW needs to learn its lesson – you don’t encourage growth and investment by taxing it into submission,” says NSW Executive Director Glenn Byres. “The preliminary figures that show revenue falling well short of projections give life to industry concerns that the new tax would serve as a brake on investment.”

Figures obtained by the PCA under Freedom of Information laws reveal the following about the ad valorem tax:

  • $9.29 million in revenue was collected in the four months from July through October
  • October delivered the most revenue with $4.45 million collected – well short of the $8 million average monthly forecast.