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Opposition slams "monster" property tax

NSW opposition leader Barry O'Farrell has rubbished the labour government's new property tax aimed to discourage property fraud, calling it a "monster" tax.

While Minister Tony Kelly announced this week that the new ad valorem tax on property transfers over $500,000 aimed to act as an "insurance policy" against property fraud in NSW, Mr O'Farrell said "insurance" measures were "actually introduced a year ago".

"[Premier] Keneally's new tax is not only unfair, but it's also based on a lie," Mr O'Farrell said.

"It is an excuse for a monster new property tax," he said.

Mr O'Farrell said the opposition will oppose and repeal the new tax in government if necessary.

"We will fight to stop its introduction and if Labour pushes it through, we will repeal it in government."

Mr Kelly denied the ad valorem fee was a tax, calling it instead an "insurance policy" against property fraud.

Under the new policy, a tax of 0.2 per cent will apply to sales of properties between $500,000 and $1 million, with a tax of 0.25 per cent for those properties sold above $1 million.

Friday, 14 May 2010
By: Belinda Luc – The Adviser