The REIV has called on both the State and Federal Governments to remove the tax on tax rort of stamp duty being levied on GST in commercial real estate transactions.
When the GST was introduced in 2000 it created an anomaly in which state property taxes – stamp duties – were being charged not just on the actual cost of the property but also on the GST paid.
As it stands, commercial and industrial properties are subject to state-based land taxes, the GST, stamp duty and stamp duty on GST!
This anomaly was first raised 1999, prior to the introduction of the GST and 10 years later nothing has been done by either the State or Federal Government to remove this anomaly.
This year’s state election and 2011 Federal Tax Summit provide an opportunity to have this issue addressed.
There is really only one acceptable outcome: stamp duty should only be levied on the actual purchase price and not on the GST. This anomaly must be removed.