NSW Treasury is considering the potential reform to the taxation of property in NSW. If implemented the reform would allow for purchasers to choose whether to pay stamp duty or an annual land tax and support a gradual transition to a new system of annual property tax.
In response to a consultation paper released in November 2020, NCOSS made a submission that included the following:
- The proposed reform to taxation arrangements does not reflect a broad based or equitable approach to land tax, which NCOSS has historically supported.
- Should the proposed approach be adopted, safeguards to prevent property owners from passing property tax on to tenants through increased rents will be required.
- Financial hardship arrangements should be developed in advance of any reforms being implemented to ensure that no homeowner faces the prospect of having to sell their home to meet property tax obligations.
- Existing tax exemptions for the community sector to be maintained, to support community organisations and community housing providers to provide essential services.
Given the limited ability of tax reform to provide affordable and suitable housing for vulnerable people across NSW the government should increase investment in affordable housing.
Read the full submission here: