Government Denies Australia is a Property Tax Haven

by Daniel Barnett 5/04/2010

 Australia, not a property tax haven

Housing Minister Tanya Plibersek has denied that capital gains tax exemptions made Australia attractive to overseas investors at the expense of its local property buyers.

Plibersek conformed that there were only 1.67 per cent of new properties purchased by foreigners in January, and many locals were encouraged to buy property. Besides, the government also ensured that bids aren’t unfairly affecting the price of high-end houses as a result of many foreigners wanting to buy properties in the country.

Plibersek has yet to comment on how the upcoming Henry Tax Review will affect the tax incentives that Australia property buyers are getting.  She also did not remark as to whether she thought Reserve Bank would increase interest rates when it meets on Tuesday, but she assured the people that they understand how crucial the issue is on housing supply and taxes.

According to Plibersek property tax rates were still at “emergency lows”, and though the government prefers that they remain reduced it will more likely to go up eventually.

"We never like to see interest rates go up, because we know that every time they do, it's a bit more stress on the family budget," she said in an interview.

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