More Taxes for All

Another State has raised taxes on the softest of targets, and we will all pay the price. This signals that history is repeating, and this time, the outcome will be exactly the same.

More Taxes for All
Photo by Annie Spratt / Unsplash

The Australian Financial Review (AFR) has the scoop on a 'shock property tax' set to be imposed on the people of New South Wales.

It might have been a shock to the journalists at the AFR but it wouldn't be to Confidential readers.

We've warned for some time that property is the traditional target of governments desperate for more money.

The rationale is simple. Someone must be the registered property owner, and they can't take it anywhere.

Hence, if they wish to stop paying the imposts to the government, their only option is to sell it.

If they don't sell, the government will sell it to recover their costs.

Right now, these changes are set to affect landlords, holiday lets, and businesses, which is why only some people will care about them. The rest will fall for the spin that this is about equality or whatever.

However, in reality, the principle behind this is terrible for everyone.

Property owners who are impacted will eventually recover the money through higher rents or raising prices.

That means the biggest losers will be renters and consumers.

There's also another element at play here related to the move to an annual land tax for residential property instead of a one-off stamp duty charge.

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