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More info is filtering through..
There will be an owner occupied rate and a investor rate.
The bolded bit is f**kery at it’s finest. If I find a keeper and intend to live there forever, I can’t pay the duty up front because a predecessor in title already opted to an annual tax.
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The proposal would give home buyers the option of paying a large lump sum upfront, similar to stamp duty, or an annual property tax.
The property tax would be a fixed amount plus a rate applied to the unimproved land value of an individual property – similar to that which occurs with council rates.
Under the change, once a property is subject to the tax, subsequent owners must also pay.
The changes would only apply to those buying property. If you’re not moving home and have already paid stamp duty you will not have to pay the tax.
Under Mr Perrottet’s proposal, owner-occupied homes would be liable for lower rates on the property tax than investment properties. However, protections would also be put in place so that the property tax would not result in rent increases without a tenant’s agreement.
First home buyers, who have stamp duty concessions for properties of up to $800,000, would be given a grant of up to $25,000 to go towards the tax or home refurbishing.
The Treasurer says that, in the short term, the property tax proposal would reduce state government revenue but it is expected to be cost-neutral in the long term.
https://www.smh.com.au/politics/nsw/how-nsw-s-proposed-property-tax-would-work-20201117-p56faq.html
That's transition through accumulation, inevitably near every property becomes subject because sooner or later there'll be an owner who sees it as advantageous.
It's a poor way to do it, because it becomes complicated and creates potentially uneven playing fields. Politically it's more palatable, because you can opt out of the change should you so choose.
That being said, a land tax is far better than stamp duty, which is a shit of a tax for all kinds of reasons. So a good move for mine.