Mr REED - 2003-05-27
I wish to pursue further the question the Leader of the Opposition asked. Will the Treasurer explain in more detail how the new arrangements that he alluded to will impact on, say, a small business, and the current rate that applies to the sale of a small business - say, something up to $1m? What is the current rate that has to be paid in duty and, under his new regime, what will the new rate be? What is he going to tell the Property Council tomorrow in relation to those new rates? Will he now stop holding back this information and come forth with the full details rather than the brief and vague description that he has given us thus far?
ANSWER
Well, I am not sure it is so vague. Madam Speaker, the principle I clearly explained was all about equity. The situation as it existed in relation to the big transfer of the purchase of the $15m hotel inside a series of acquisitions, of which that was just one is that, the way the scheme is structured at the moment, it would have attracted approximately a 0.6% rate in the land rich provision as they stand. The land value had to be more than 60% of the overall purchase of the transaction going through, so the 60% provision goes. How it is structured will clearly be explained in budget papers. It is a simple case: if it is over $500 000 it will attract stamp duty.
ANSWER
Well, I am not sure it is so vague. Madam Speaker, the principle I clearly explained was all about equity. The situation as it existed in relation to the big transfer of the purchase of the $15m hotel inside a series of acquisitions, of which that was just one is that, the way the scheme is structured at the moment, it would have attracted approximately a 0.6% rate in the land rich provision as they stand. The land value had to be more than 60% of the overall purchase of the transaction going through, so the 60% provision goes. How it is structured will clearly be explained in budget papers. It is a simple case: if it is over $500 000 it will attract stamp duty.
Last updated: 09 Aug 2016