I am planning to buy my next home
What the proposed property tax reform could mean for you.
Choice to suit your lifestyle.
If you are looking to purchase your new home, you would be given the choice to pay either an upfront stamp duty or an annual property tax. By choosing the option that suits your lifestyle and plans for the future, you would have the potential to save money and have greater flexibility.
Gaurav and Amrita want flexibility to live in the area and house they need as life changes and job opportunities emerge. Amrita is a teacher and is regularly posted to new regions so the family expects to move home every three years.
|2021 House 1 $600,000||2024 House 2 $700,000||2027 House 3 $800,000||Total tax over 7 years|
|Stamp duty or||$22,335||$26,835||$31,335||$80,505|
|Property tax||$1,354 p/a*
$4,218 over 3 years
$4,714 over 3 years
|Starting at $1,696 p/a||$10,628|
Total savings over 7 years; $69,877
Gaurav and Amrita choose to pay the annual property tax and save $69,877 over seven years under the proposed new scheme.
* Shown as the average annual payment over the three year period.
After many years in the city raising her children, Sue has recently retired and is planning a sea change. She is looking for her ‘forever home’, which she expects to enjoy for the next 20 years.
|2021 'Forever home' $700,000||Total tax over 20 years|
|Stamp duty or||$26,835||$26,835|
|Property tax||Starting at $1,765 p/a||$51,481*|
Difference over 20 years; $24,646
As Sue is planning to stay in the same home for the next 20 years, she decides to pay the once-off stamp duty and save $24,646 over this time.
*An (illustrative) estimated growth rate of 3.8% per year has been applied to the property tax payment.