New EXIT tax for NSW

Viewing 5 posts - 1 through 5 (of 5 total)

Seachange
Member
@seachange
Join Date: 2004
Post Count: 5
June 20, 2004 - 9:09 am
Does anyone know much about the new exit tax by the NSW Govt on investment properties?
Do you know if it can be offset against Capital Gains?
Appreciate any help for a fist timer here.
melbear
Member
@melbear
Join Date: 2003
Post Count: 2,429
June 20, 2004 - 12:15 pm
Seachange – definitely is offset against CGT. Basically, it’s a cost of selling, so is taken out of the profit equation before calculation of CGT happens.
It’s Bob Carr’s way of getting back at the Fed Gov for not giving them as much of the GST pie as they collect – by taking it away from the Fed’s CGT pie!
Cheers
Mel
Seachange
Member
@seachange
Join Date: 2004
Post Count: 5
June 20, 2004 - 1:04 pm
Thanks for the help. As a new kid on the block I am thrilled to have found this site and helpful people…Thanks again
Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
June 20, 2004 - 1:45 pm
Hi Seachange,
As Mel said it is considered a capital cost and will be offset against capital gains.
The exit tax starts phasing in when profits exceed 12% and are fully (2.25%) implemented once the profit exceeds 15%.
While no-one likes to pay such an impost do not neglect the bigger picture.
Derek
[email protected]
Property Investment Support Available. Ongoing and never stopping. PM welcome.
maniyak
Member
@maniyak
Join Date: 2002
Post Count: 10
June 21, 2004 - 1:52 am
The new tax is for all investment properties etc, but also says you have to live in your home for 2 years to be called a PPOR and so exempt. So, if you are selling your home of 18 mths, is the tax payable?
Or in may case, what was an IP for 1 year and has been PPOR for the last 6 months, I think that gets the 2.5% as well. Not happy [comp]