Budget largesse keeps on coming

THE ACT Budget will continue the abolition of stamp duty for home buyers with further reductions from June 3 that include: 

• The buyer of a $300,000 home will save about $2,900 in stamp duty compared to before the introduction of tax reform (a saving of $900 more in 2015-16 compared to the previous year);
• the buyer of a $500,000 home will save $5,900 ($1,200 more in 2015-16); and
• the buyer of a $750,000 home will save $7,775 ($1,200 more in 2015-16).

Chief Minister Andrew Barr is also promising further reductions in stamp duty for commercial properties using the example of stamp duty on the purchase of a $5 million commercial property being $60,750 lower than pre tax reform levels.

In addition, eligible pensioners, people over 60 and first-home buyers are eligible for the concessional rate of stamp duty – meaning they pay only $20 in stamp duty, a saving of more than $15,000.

Barr has also announced that from July 1, insurance tax will again be cut. The tax will be cut from 4 per cent to 2 per cent on all premiums, including building and contents, motor vehicles, professional indemnity (excluding life insurance). Tax on life insurance will be cut from 2 per cent to 1 per cent. The coming financial year will be the last year that duty will apply on insurance policies, with the tax being fully abolished effective by July 1, 2016.

 

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