Impacts of reforms to date stage 1 Revenue neutralityChanges in residential general rates to date for houses & unitsImpact of tax reform on householdsImpact of tax reform on businessStage 2 reforms 2017-18 - 2021-22 Commercial conveyance duties removed for most transactions from 2018-19 Residential Conveyance duties continue to reduce every year General rates increases moderated & more equitable
Impact of tax reform on households
General rates would have increased without tax reform, as rates were indexed to the Wage Price Index before tax reform.
The table below provides an example of the impact on a typical household. It shows that rates would have increased by $172 without tax reform. It also shows that insurance duty would continue to be charged. This example does not consider the impacts of reducing conveyance duties. If this family buys a home in 2016-17, they will save $7,040 in conveyance duty on a $500,000 home.
Table 3 Estimated impact of tax reform on a household, excluding conveyance duty cuts
|
2011-12 ($) |
2016-17 ($) |
Difference ($) |
Difference (%) | |
|---|---|---|---|---|
| With tax reform | ||||
| General Rates | 1,276 | 1,900 | 624 | 49 |
| Insurance Duty | 221 | 0 | -221 | -100 |
| Total | 1,497 | 1,900 | 403 | 27 |
| No tax reform | ||||
| General Rates | 1,276 | 1,448 | 172 | 13 |
| Insurance Duty | 221 | 300 | 79 | 36 |
| Total | 1,497 | 1,748 | 251 | 17 |
