Expands Team Behind the desk BY DAVID GARWOOD The Government is out to get you! Yes, as least as far as property matters are concerned. 1. There is a little known fact about the introduction of the GST and its effect on the individual state’s budgets. In 2005, Peter Costello the then Treasurer boldly said in Melbourne “The GST was introduced to abolish other taxes, You cannot keep the GST and the other taxes - you have the GST or the other taxes.”They had to abolish their state taxes in return for getting their share of the national GST pie. This was a big call, as Howard and Costello seemed to have forgotten the social and political implications of the GST on the staples of life and the big kickback from the voting public and other parties like the Democrats. The financial institutions duty, bank accounts debits tax, NSW accommodation tax and of course the big ones - conveyancing duties, and a range of other stamp duties on leases, mortgages, sales of shares, cheques and credit arrangements. All other taxes were to go as well as stamp duty on the sale of property. Some did go, but it is a truism that the property market pays for the health services. The reason the states have not changed their taxation base is they can’t afford to. Who is going to have the political nerve to change this? Most has conveniently been forgotten.
Welcome Melanie Primmer David and Theodora Garwood welcomed the lovely Melanie Primmer into their real estate group last week with big smiles. The Garwoods are proactive in hiring new staff who want to work independently but associate themselves with a brand name that is growing in reputation and results. Garwoods recently sold 15/2 Banksia Avenue, Noosa Heads, a 2 bedroom unrenovated for a top price and received multiple offers this week on a prime Hilton Terrace development. Melanie joins Garwoods after more than 12 years in the industry, and has an impressive sales record, recently having sold a 3 bedroom apartment in the Outrigger. If you want sales stats please phone us anytime and if you are interested to know what your home is worth, call the team whose attitude is, nothing is too hard!
22.72% of the state’s entire taxation revenue stream is from Stamp Duty, and 9.3% from Land Tax!! The health budget for this year is $19.233 billion. Where would that leave us if stamp duty was abolished? Current projections estimate that the revenue from Stamp Duty this year will drop by around $1.32 billion! 2. Another leg of my thoughts, is the blocking of the loophole being exploited by overseas property investors as sellers export their capital gains and not paying tax on them. As of July 1 2017, for “overseas entities”, a person who is not resident in Australia, for any sale over $750,000, unless that person has obtained from the ATO a Clearance Certificate (meaning that they are resident in Australia and pay tax here), the buyer’s solicitor is required to remit 12.5% of the total price to the ATO. Imagine you are an Australian resident and failed to obtain this exemption, the potential effect on paying out your mortgage for example? 3 Another is to plug the leak being exercised by property developers, where they receive GST as part of the cost of new residential land or apartment developments. Some developers have claimed all the GST they paid as a part of the cost of creating the development in their quarterly BAS statements, and received cash credits. However, once the development is sold and they have the cash GST from the purchasers, they fold the company and disappear. So now, from July 1 2018, the purchaser needs to apportion the GST from the total cost of the property they are buying, and remit it directly to the ATO. Comments welcomed please address to david@garwoodsestateagents.com
BEACH N’ BUSH AT SUNSHINE – Offers Invited Absolutely unique in design, this Sunshine Beach home is negotiable on price. Charming family residence built by the current owners who have loved living here with lazy walks to the beach via the grassy track at rear of property. Perfect for a family with a downstairs self contained flat for guests and further potential to build at the rear of the property. Don’t delay, this is a gem. 12422393-RC29-19
• Inspectbyappointmentonly • Large864sqmetreblock • SolarHotWater • HeatedIngroundPool • RecycyledTimberJoinery,BlackbuttFlooring
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8 ADAMS STREET, SUNSHINE BEACH THEODORA GARWOOD 0408 710 373 DAVID GARWOOD 0411 862 954
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www.garwoodsestateagents.com Thursday, 11 July, 2019
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