THE LAW Society of NSW last week continued its vendetta against vendor duty, which it said is adding unnecessary complexity and cost to property transactions and should be scrapped.
Calling on the new State Treasurer to stamp out the exit tax, president of the Law Society John McIntyre said it was clear the Vendor Duty had been a failure.
“The Law Society opposed the introduction of this tax when it was first announced by the State Government last year and warned that it would be an administrative nightmare,” McIntyre said.
The Law Society has since worked with the Office of State revenue in an effort to deal with the complexities of the tax, which it argued is a clear disincentive to investors.
“The myriad exemptions and confusion over the required supporting documentation to claim these exemptions is adding layers of complexity to property transactions in NSW that do not apply in other states,” McIntyre said.
Solicitors, as well, have offered feedback regarding the tax, said the LSNSW, and the general consensus is that it is a “real dog of a tax”, said McIntyre. “It is very unpopular and seen as both retrospective and discriminatory.”
McIntyre also criticised the exit tax’s impact on the property market, arguing that people selling investment property object to having to pay the tax before they receive the sale proceeds.
This, joined with “evidence” that it is failing to raise the revenue it was forecast to collect is enough to rethink the tax, McIntyre said. In his new role as State Treasurer, Dr Andrew Refshauge has an opportunity to do this, he said.