Tesch criticises law to 'tax homes forever'
Member for Gosford Ms Liesl Tesch has criticised new land tax laws which will "tax homes forever".
"The Perrottet Government has passed its plans to tax homes forever," she said.
"Mr Perrottet talks about helping people achieve the Australian Dream," Ms Tesch said.
"Stamp-duty is a one-off upfront cost, while this land tax is a forever cost."
She said the new tax was geared towards first home buyers who could opt into an annual fee of $400 and an annual tax of 0.3 per cent of the property's value.
The scheme will be operational from 16 January 2023.
"The total paid by a household has no clear limit as no one can tell how long someone will stay in their own property."
Ms Tesch said that abolishing stamp-duty and introducing an annual land tax would, in the long-run, result in more household expenses, placing the Australian Dream even further out of reach.
She said she was outraged that these extra taxes would reduce housing affordability and access across the State.
"Perrottet's land tax is incredibly short-sighted.
"Instead of supposedly helping young people into homes, this will impose a forever tax that many simply will not be able to afford."
She said that, with the increase in house prices far outstripping wage growth, "people will find it increasingly difficult to keep a roof over their heads".
"The Liberals have planted the seeds of another housing crisis decades into the future.
"It is no secret that as many enter retirement, the value of their homes is a great source of stability and wealth.
"The forever tax will jeopardise this, forcing those who can no longer afford it to either sell or enter reverse mortgages."
She said economists were also forecasting the initial savings on stamp duty will push up home prices across NSW.
Ms Tesch says, "If the Liberals were serious about improving levels of home ownership without sacrificing future generations, they would invest in social housing.
"They would not introduce regressive taxes, and they would be able to come up with policies that don't simply kick an issue down the road for future leaders to grapple with."
SOURCE:
Media release, 25 Nov 2022
Liesl Tesch, Member for Gosford