A mortgage tax to cost ACT homebuyers an extra $350 is being considered by the ACT Government, according to the Opposition.
Opposition Leader Kate Carnell called on the Chief Minister, Rosemary Follett, yesterday to confirm or deny the new tax.
The ACT is the only state or territory without stamp duty on mortgages and other home and business securities. Elsewhere they add about $350 to the purchase cost of a typical home.
A spokesperson for Ms Follett said, “”The Chief Minister has declined all Budget comment to date, so I don’t think she will be responding on this one either.”
Ms Carnell said, “”If Ms Follett introduces the duty, she will argue that she needs to bring the ACT in to line with other states and territories, a line she uses only when it suits her to do so. At the end of the day is will be just another burden that homebuyers and businesses can ill afford in Canberra at the moment.”
Businesses trying to increase investment and employment would face extra charges on loans.
Stamp duties on mortgages and loans were abolished in the ACT in 1987. Other states and territories give exemptions to some first home-buyers, typically those to qualify for other concessions. Some have lower rates for residences than investments and some have duty-free thresholds.
The mortgage stamp duty is separate from the general conveyancing duty which amounts to about $3000 on a typical home.