Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

<html><body><div class="cq-article-content-paras section">
Queensland Treasury has warned of uncertainty in Brisbane's apartment market, especially if the southern markets of Sydney and Melbourne falter.
Both property taxes and mining royalties helped the Palaszczuk government revenue in yesterday's budget, with land tax receipts predicted to jump 11 per cent to $1.3 billion in 2018-19. Land tax thresholds have not been amended for a decade.
Stamp duty on transfers are estimated to rise 4 per cent to $3.2 billion, after a 5.7 per cent fall in 2017-18.
Payroll tax revenue was also expected to jump 5 per cent to $4.1 billion next financial year, with key sectors of construction, mining and manufacturing contributing to the growth, according to the budget papers.
Details revealed in Tuesday's Queensland budget indicate mining royalties are set to triple this year's expected surplus, rising from $485 million in the mid-year update to $1.51 billion.
"Domestically, uncertainty remains around the extent of oversupply in the apartment market, and any concurrent downturn in major southern capitals could exacerbate the downturn in Queensland," Treasury said in budget papers under "risks and opportunities".
Under the new taxes introduced in Tuesday's budget, foreign landowners will be slugged with an extra 0.5 per cent in land tax for properties worth more than $10 million plus an increase in the foreign transfer duty from 3 per cent to 7 per cent.
Both taxes will raise a total of $326 million over the next four years.
The First Home Owners Grant has been extended for another year, but reduced as foreshadowed to $15,000 and will not be extended to established homes.
The property sector received mixed news in the State Budget, handed down by Treasurer Jackie Trad, according to the REIQ.
“Taxing foreign buyers is a measure best suited to markets where affordability is an issue," the REIQ's chief Ms Antonia Mercorella said.
"That is not the case in Queensland."
“We have more than 550 suburbs throughout the state where the median house price is $500,000 or below and 132 of those suburbs are in Greater Brisbane.
"The REIQ was also disappointed that the State Government chose to drag its feet on stamp duty reform, ignoring expert advice that the stamp duty was a regressive, outdated form of property taxation that stifled housing mobility."
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j.ballantyne1990-6AQqhLzZaK

Uncertainty looms as foreigners taxed higher in Queensland budget

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EXPERT OBSERVATION
The latest annual taxation data shows that state and local government coffers were boosted by $52.5 billion in 2016-17 due to taxes on property.
Each year, the Australian Bureau of Statistics (ABS) releases taxation statistics and the latest data for 2016-17 was released recently. Over the 2016-17 financial year, state and local governments collected $52.5 billion in taxes from property with the figure climbing by 5.9% over the year. The taxation take from property is now more than double what it was in 2005-06.
Property taxes accounted for an historic high 52.8% of all tax revenue for state and local governments, up from 51.9% over the previous year.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/4/taxes1.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/4/taxes1.jpg" alt="">
Property taxes are broken down into two broad types, taxes on immovable property and taxes on financial and capital transactions. Taxes on immovable property include: land tax, municipal rates and other smaller taxes. Taxes on financial and capital transactions include predominately stamp duties as well as a few other smaller taxes. Taxes on immovable property were recorded at $29.185 billion over the year with the remaining $23.338 billion being taxes on financial and capital transactions. Over the year, taxes on immovable property increased by 7.9% while taxes on financial and capital transactions increased by 3.6%.
The table highlights the value of taxation revenue between 2006-07 and 2016-17 across each state and territory for land tax, municipal rates and stamp duty, which are the three largest sources of taxation revenue at the state and local government level. Probably the most notable change over the period has been the uplift in revenue, particularly from stamp duty, in NSW and Vic which reflects the strength of these housing markets over the past decade relative to other states and territories.
Between 2006-07 and 2016-17, stamp duty revenue in NSW has increased by 115% and it has increased by 114% in Vic. Revenue from land taxes have doubled over the period in Vic (153%), Qld (123%) and WA (125%) while revenue from municipal rates has doubled over the period in WA (125%) and ACT (184%).
In NSW, stamp duty revenue accounted for 49.1% of all property tax revenue in 2016-17 up from a recent low of 32.3% in 2008-09. It is a similar story in Vic where stamp duty revenue accounted for 42.6% of property tax revenue, up from a recent low of 36.5% in 2012-13. The cyclical nature of housing market transactions makes stamp duty a volatile source of revenue for state governments. Another way to look at this is in WA where the housing market has been weak for a number of years, stamp duty revenue accounted for just 28.5% of all property related tax revenue in 2016-17 down from a peak of 54.5% in 2007-08.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/4/taxes2.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/4/taxes2.jpg" alt="">
From here, we are now seeing the combined effect of dwelling values and transaction numbers falling in Sydney and Melbourne along with a number of regional areas of NSW. Both the NSW and Vic governments have benefitted substantially from stamp duty revenue over recent years and it now appears set to fall over the coming years as the housing market weakens after a number of years of surging values.
With a volatile source of taxation revenue such as stamp duty that taxes the small proportion of individuals that transact property each year, moving away from a transactional tax to a tax on all physical properties seems to make a lot of sense. Especially considering transaction volumes remain well below their peak and stamp duty revenue growth is largely being driven by higher values rather than a greater number of transactions.
Of course the transition to a broad based land tax will be difficult and recent owners may have to be compensated however, a more guaranteed source of revenue for state and territory governments means that they can much better plan for the future rather than being reliant on dwelling values and transactions remaining high in order to boost revenue.
Over the second half of 2017 and into 2018 we have seen residential housing markets weaken with values and transactions falling, particularly in NSW and Vic. As a result we would expect over the current financial year that stamp duty revenue will fall and as a result so will total property taxation revenue.
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ckusher-ujnxiKuFQs

Property tax revenue continues to climb: Cameron Kusher

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The Gold Coast millionaire businessman and property developer Michael Issakidis has been sentenced to a decade in jail for his involvement in a $135 million tax evasion case, the largest ever successfully prosecuted in Australia.
Issakidis and his co-conspirator, former Ernst &amp; Young executive Anthony Dickson, used a web of companies to evade corporate tax.
The Supreme Court of NSW handed Issakidis the jail sentence, including a non-parole period of seven years and six months, on Thursday.
The frail 73-year-old faced a sentence hearing in the NSW Supreme Court after a jury found him guilty in June last year. There had been four trials.
The Federal Revenue Minister Kelly O'Dwyer said it was the "largest and one of the most complex investigations into tax fraud in Australia's history".
Issakidis had been allowed to return to his Sovereign Island mansion after posting bail of $1.5 million in 2016.
But the authorities held on to more than $40 million in assets including his prestige vehicle collection of several Rolls-Royces, a Lamborghini and an Aston Martin along with two yachts, which were seized during the Australian Federal Police raid (pictured above and below).
Issakidis was arrested at his waterfront mansion and charged with conspiracy to deal in the proceeds of crime and conspiracy to dishonestly cause a loss to the Australian Taxation Office.
The Federal Police allege Issakidis committed tax fraud through his medical company Neumedix and funnelled company funds through offshore accounts.
He initially faced Southport Magistrates Court, where he was refused bail and extradited to Sydney. He’d then been granted bail on the condition he live at his Paradise Point home.
The Australian Federal Police and Australian Tax Office said the arrest was after a seven-month investigation under Project Wickenby, the federal government's pursuit of wealthy alleged tax evaders.
The website of NeuMedix said Michael Issakidis was the commercial connoisseur for NeuMedix.
“A consummate statesman and pragmatist, Michael's legal background coupled with many years of property development provides a tempered prudence when assessing opportunities.”
After their move from Sydney, his wife, the Gold Coast socialite Donrika, once starred in a memorable 60 Minutes segment on the A-List on the Gold Coast in the 1990s. With a downwards sweep of her hand, she indicated she was dressed in "Chanel, Chanel, Chanel."
Issakidis and his wife were unconscious in their car after he failed to turn up to court to be sentenced last October. They were discovered after 22 hours by his brother, Con.
Crown prosecutor Michel McHugh SC noted in court, referring to a psychiatric report, that Issakidis said he was not depressed and that when the couple attempted suicide "we were just two people who wanted to be together".
It's expected he'll apply to be transferred to a Queensland prison on welfare grounds.
The businessman's barrister, Mike Smith, noted that Dickson had been found to be "the predominant player and motivating force behind the conspiracy.
<div class="cq-article-content-paras section">
Dickson was in 2015 sentenced to 11 years' jail, which was later increased to 14 years on appeal. His sentence was the longest ever handed down for tax fraud and money-laundering.
The pair created a web of false identities to aid their deception and siphoned money through the UK, Hong Kong and the UAE via fake domestic and international companies. They deliberately absorbed $450 million of otherwise assessable income through falsely created losses in order to evade $135 million. They profited to the tune of $63 million, spending the money on lavish lifestyles.
The complexity of the offshore companies involved and the fact they were based in secrecy jurisdictions such as the Cayman Islands made the investigation difficult, but sources described the AFP officers involved as "relentless" in the pursuit of both Dickson and Issakidis.
At the centre of the scam was Neumedix Health Australasia Pty Ltd. Issakidis and Dickson caused Neumedix to fake losses on the acquisition of medical technologies. They then used those losses to avoid tax on income generated on the ownership of units in a number of trusts.
</div>
<div class="cq-article-content-media section">"These trusts generated very large taxable profits from their participation in certain financing transactions that were arranged between the offender, ANZ and some of its clients," according to court documents obtained by the Australian Financial Review.</div>
 
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Gold Coast property developer Michael Issakidis jailed for tax evasion

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GUEST OBSERVER
The federal government announced a year ago that it would review the charges imposed on drivers for using our roads. That review hasn’t yet happened. They should get on with it, because reforming the way we charge road users will make our economy more productive and our cities more liveable. The longer we wait, the harder the path to those improvements becomes.
The problem with the present system is that there is only a weak link between what motorists pay and the costs they create when they use roads. The amount motorists pay for registration, for example, does not vary with the amount of time they spend on the road, let alone how long they’re stuck in traffic jams.
But before we get to the benefits of reforming how drivers pay for the costs of their road use, we need to debunk a big myth about road funding in Australia. It’s one that has become a major distraction in discussions about the need for change.
The myth of the fuel excise crisis
Vehicle technology is improving. Cars are becoming more fuel-efficient, and powering them with electricity is becoming more mainstream. At the same time, our commuting patterns are changing – over the past few years, the average distance Australians travel by car has fallen.
This is worrying the government, which collects fuel excise from us every time we fill the car with petrol. Urban Infrastructure Minister Paul Fletcher has specifically raised concerns that: "the revenue from fuel excise and car registration is unlikely to keep pace with the amount we spend as a nation on operating, maintaining and investing in roads."
The government’s key economic advisory body, the Productivity Commission, recently suggested reform of the fuel excise levy was “becoming more urgent”. But talk of a funding crisis is overblown.
First, the minister knows that the government doesn’t, and can’t, segregate revenue from road use to spend on roads. Federal spending on infrastructure is funded from general government revenue, the pool of funds received from the full range of federal taxes. As far as the government is concerned, road funding is just one of many expense programs claiming a piece of the budget pie.
As for revenue from the fuel excise, the decision in 2014 to reintroduce indexation will deliver much-needed relief for the government. The truth is, revenue did not fall much over the past decade and the levy now increases each year in line with inflation. The government may cry poor, but it can’t cry broke.
<img src="https://images.theconversation.com/files/196051/original/file-20171123-6013-158o9e3.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
So, do we still need that long-promised review?
Fuel excise revenue is not the problem the government would have you think it is. But its promised review remains important because reforming road-user charges would bring big benefits for Australia.
The disconnect between what motorists pay and the costs of their road use matters because traffic congestion is the main cost that cars create when they use existing roads. The regular wear and tear of our roads is overwhelmingly caused by trucks and other heavy vehicles; cars do negligible damage to paved roads.
An existing mechanism ensures that trucks are charged for their wear and tear on roads. What’s needed is an equivalent mechanism to ensure that cars are charged for the costs they create by adding to congestion.
As we describe in our report Stuck in traffic? Road congestion in Sydney and Melbourne, such a mechanism would mean charging people who drive at peak times on congested roads a small fee.
People who pay the charge would get a quicker and more reliable trip, because there would be fewer cars on the road at peak times. People who can travel outside of the peaks would not have to pay, because there would be no congestion charge when the roads are not congested. Because traffic flows would be spread more evenly across all hours of the day, our economy would become more efficient and our cities more liveable.
Critics of these decongestion schemes argue that charging motorists in this way is unfair. Why should low-income earners or those living on the fringes of our major cities, they argue, be hit with a new charge for something they can’t avoid when they go to work?
It’s a valid concern, but our report suggests it is entirely feasible to redesign motor vehicle charges in ways that actually make them fairer.
A key element of fairness is that any new congestion charge should be offset by reducing or removing vehicle registration charges. The goal should be to change how we pay for roads, not how much we pay. Developing such options is precisely what the long-promised review should do.
This reform would allow us to get the greatest value from the road network we already have, before we ask taxpayers and motorists to pay for constructing big and expensive new roads.
Time to get the show on the road
If we don’t make changes, congestion and delays on the roads in our biggest cities will only get worse. The government should provide terms of reference for the review before Christmas. These terms should acknowledge the importance of developing options for charging motorists for the congestion they cause.
<img src="https://counter.theconversation.com/content/87931/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">In doing so, it will be important to resolve how the range of state-levied taxes on motorists, including existing and prospective toll roads, might fit within new charging arrangements. Only then should the review turn to the question of how many expensive new roads the states should be building.
Marion Terrill, Transport Program Director, Grattan Institute and Hugh Batrouney, Senior Associate, Grattan Institute.
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/delay-in-changing-direction-on-how-we-tax-drivers-will-cost-us-all-87931" target="_blank">original article</a>.
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Delay in changing direction on how we tax drivers will cost us all: Grattan Institute

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Apartment owners in New South Wales who let out their apartments or even their spare rooms on sites such as Airbnb and Stayz may have to pay compensation to their neighbours.
The compensation targets "party houses" to reduce noise.
A plan before the state government also suggests the owners pay extra strata funds in an attempt to regulate the thriving short let market.
Sydney holds 17,000 of the 40,000 airbnb listings in New South Wales.
The state government is considering limiting the number of days a property can be let out without needing a development application.
Planning Minister Anthony Roberts told the Daily Telegraph it was a complex issue.
“We believe by engaging with those most affected we can achieve the right balance of what level of regulation is required to best meet the needs of the community," he said.
Airbnb’s Brent Thomas said the company injected “half a billion dollars” into the state’s economy and created more than 4400 jobs.
“The current rules for home sharing in NSW are confusing, complex and were written before the internet existed,” he said.
Director of government affairs Jordan Condo said the NSW Government must not forget that short-term rental accommodation injected $2.1 billion into the economy last year.
He said much of the $2.1 billion was injected in regional New South Wales.
According to the news.com.au the average Airbnb host in New South Wales earns $4,400 a year sharing their home.
<div class="story-intro">
The options paper will be open to public consultation for three months while the government decides what to do with the industry estimated to be worth $31 billion nationally.
 
 
 
 
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jrobinson-rf4aSBido9

Airbnb hosts in New South Wales to face nuisance tax

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EXPERT OBSERVER
Studies of European countries show that bank taxes similar to the 0.06% bank levy introduced by the government in the 2017 federal budget will be largely borne by customers, not shareholders.
The levy could also make the banking system more, rather than less risky. The fact that a bank is asked to pay the levy is a confirmation that it is “too big to fail”. This could in turn encourage riskier behaviour. The levy might also trigger a higher probability of default by reducing a bank’s after-tax profitability
But it is difficult to say whether banks will pass the levy on to customers by increasing their loan rates, fees or both.
In its response to the levy, NAB confirmed it will not just be borne by shareholders:
The levy is not just on banks, it is a tax on every Australian who benefits from, and is part of, the banking industry. This includes NAB’s 10 million customers, 570,000 direct NAB shareholders, those who own NAB shares through their superannuation, our 1,700 suppliers and NAB’s 34,000 employees. The levy cannot be absorbed; it will be borne by these people.
Aware of this problem, the government has asked the Australian Competition and Consumer Commission (ACCC) to undertake an inquiry into residential mortgage pricing. The ACCC can require banks to explain changes to mortgage pricing and fees.
When banks pass on these taxes
The bank levy is similar to taxes recently introduced by some G20 economies, including the UK. These had the dual purpose of raising revenues and stabilising the balance sheets of large banks in the aftermath of the global financial crisis.
An analysis of bank taxes in the UK and 13 other European Union countries shows that the extent to which taxes are passed on to customers depends on how concentrated the banking industry is.
The more the industry is dominated by a small number of banks, the greater the share of the tax that is passed on to customers and the less that is borne by shareholders. In more concentrated industries customers have relatively fewer alternative options and therefore tend to be less mobile across banks. This in turn gives the large banks greater market power to increase interest rates and fees without losing customers.
Australia’s banking industry is quite concentrated. In fact, we’re around the middle of the pack of OECD countries, much higher than the US, but lower than some European countries. From this we can surmise that at least some of the cost of the bank levy here will be passed on to borrowers through higher loan rates, fees or both.
An IMF study of G20 countries suggests that a levy of 20 basis points (i.e. 0.2%, approximately three times higher than the Australian government’s bank levy), could lead to an increase in loan rates of between 5 and 10 basis points. This means that the monthly repayment on a loan (assuming an initial rate of 5.5%) would increase by approximately A$6 for every A$100,000 borrowed.
The IMF also found that the bank levy doesn’t just hit customers. A 0.2% levy would reduce banks’ asset growth rate by approximately 0.05% and permanently lower real GDP by 0.3%.
The impact on customers
If the banks pass on the levy to customers then it becomes just another indirect tax, similar to the GST. The question then is whether this is regressive - does it have a greater impact on those on lower incomes than higher incomes.
Lower income earners are likely to borrow less than higher income earners. However, lower income earners are also less able to bear an interest rate increase. They are also more likely to be excluded from borrowing when the cost of borrowing increases.
In this sense, then, if the bank levy is passed on to customers it could become a barrier to home ownership for some lower income borrowers.
More generally, if the value of bank transactions is a higher proportion of low incomes than of high incomes, then the bank levy would operate as a regressive tax and contribute to sharpening (rather than smoothing) inequalities.
Both of these would be unintended, but undesirable, consequences of the levy.
Fabrizio Carmignani is a Professor at Griffith Business School, Griffith University. 
Ross Guest is a Professor of Economics and National Senior Teaching Fellow, Griffith University.<img src="https://counter.theconversation.edu.au/content/77782/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1" style="font-size: 12.16px; line-height: 1.3em;">
All authors are for <a href="https://theconversation.com/research-shows-the-banks-will-pass-the-bank-levy-on-to-customers-77782" target="_blank">The Conversation</a>.
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jchancellor-FAypfDUnLy

Research shows the banks will pass the bank levy on to customers

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Taxation revenue from property continues to climb, according to CoreLogic’s latest Property Pulse.
The property data firm says that revenue earned from property taxes has seen a bolstering of state and local government bank accounts with the latest Australian Bureau of Statistics (ABS) data showing that state and local governments nationally collected $49.567 billion (51.9 percent) of their total taxation revenue from property, a record high proportion and 9.6 percent higher over the year.
Stamp duty on conveyances accounted for the largest overall proportion of property tax revenue.
Over the 2015-16 financial year, state and local governments raised $20.607 billion in revenue from stamp duty, accounting for 41.6 percent of total property tax revenue.
According to CoreLogic research analyst Cameron Kusher, as a proportion of total property tax revenue, stamp duty has previously been higher however, over the past few years there has been a substantial increase in the value of revenue collected from stamp duty.
<a href="https://www.propertyobserver.com.au/images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.08.45%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.08.45%20am.jpg" alt="">
He said, “It is pretty easy to see what booming housing markets do for state government coffers with the NSW and Vic governments seeing stamp duty revenues surge.
Of course, when the housing market isn’t booming it has a substantial impact on stamp duty revenue, see NSW and Vic in 2008-09 and WA more recently.
The uncertainty surrounding stamp duty and its dependence on stock turnover makes it an inefficient and volatile source of taxation revenue.
Because stamp duty is only collected from properties which transact, the state governments are relying on values and transactions rising across the 5% to 7% of properties which turnover in any given year to drive their major source of property tax revenue.”
<a href="https://www.propertyobserver.com.au/images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.08.55%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.08.55%20am.jpg" alt="">
CoreLogic also noted that the three largest sources of property tax revenue; land tax, municipal rates and stamp duties on conveyances, accounted for 90.3% of all property related tax revenue to state and local governments in 2015-16 and 46.9% of total taxation revenue.
Mr Kusher said, “We already know that $20.607 billion in tax revenue came from stamp duty on conveyances, a further $7.237 billion came from land taxes and $16.924 billion came from municipal rates.”
“Land taxes and municipal rates are much more guaranteed income streams than the more volatile stamp duty on conveyances.
<a href="https://www.propertyobserver.com.au/images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.09.06%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.09.06%20am.jpg" alt="">
For this reason, it would make sense to move from stamp duty to a much more efficient, easier to collect and holistic land tax.
The reality is that any such move is unlikely to be supported by the NSW and Vic governments currently given how much revenue these states continue to rake in due to the ongoing housing booms in Sydney and Melbourne,” he said.
<a href="https://www.propertyobserver.com.au/images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.09.12%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/04/Screen%20Shot%202017-05-04%20at%2011.09.12%20am.jpg" alt="">
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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jonathanchancellor-7SQnKwU6yx

Tax revenue from property continues to climb: CoreLogic

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Self-managed superannuation funds would be banned from borrowing money under an expanded housing affordability policy being unveiled by federal Labor today as unchecked growth could pose a threat to the nation's financial system stability over the long term due to growing exposure to bad investments.
The new measures will include adopting a nationally consistent Vacant Residential Property Tax, as recently imposed by the Victorian government, to curb investors buying properties and leaving them vacant.
Labor will also double the fines imposed on foreign investors who illegally purchase residential real estate. 
Victoria to tax owners for leaving homes vacant as it tackles housing crisis
Labor leader Bill Shorten and Shadow Treasurer Chris Bowen have a new suite of seven measures that will add to Labor's existing policy to curb capital gains tax concessions and negative gearing.
A Labor government would adopt a Coalition proposal to establish a bond aggregator, which provides a larger and cheaper pool of funds for the private sector to build community housing.
It will reappoint a housing minister.
Since September 2013, when the Coalition came to power, prices in Sydney have increased by nearly 50 per cent and by more than 30 per cent in Melbourne.
Residential vacancy rates in the Sydney metropolitan market have sunk to 1.9 percent, while Melbourne's vacancy rate fell to a 10 year low in February to 1.7 percent. 
Former banker David Murray recommended in his 2014 Financial System Inquiry that a general ban on borrowing by SMSFs, which was lifted in 2007, be restored. Since 2012, borrowings by self-managed funds has grown from $2.5 billion to $24 billion, of which 91 per cent, or almost $22 billion has been for residential and commercial property.
<div>
"In addition, borrowing by superannuation funds implicitly transfers some of the downside risks to taxpayers, who underwrite adverse outcomes in the superannuation system through the provision of the age pension," his inquiry said.
Mr Shorten said restoring the general ban on borrowing would "help cool an overheated housing market partly driven by wealthy Self-Managed Super Funds".
</div>
<div>"The government has simply ignored this recommendation while housing risks have been building in the economy on their watch," says Labor's policy document, in an advance briefing to the Australian Financial Review.</div>
<div>
"Ignoring this recommendation would also leave the budget more exposed over time.
"This measure will prevent the unnecessary build-up of risk in Australia's superannuation system, reduce future calls on the aged pension as a result of a less diversified superannuation system, and make the financial system more resilient on the face of potential economic shocks." 
What Victoria’s new vacant property tax means to you: Juwai's Gavin Norris
</div>
<div>
Labor will stick with its existing policy of halving the 50 per cent capital gains tax exemption for property investors to 25 per cent and restricting future negative gearing to new homes only.
Labor's plan to double foreign investor fees will result in new charges of between $10,000 and $40,600, depending on the value of the property.
</div>
<div>The new criminal penalties for breaching FIRB rules on residential real estate will be $270,000 for an individual and $1.35 million for a company. The civil penalty will be the greater of either 20 per cent of the purchase price or 20 per cent of the market value of the property. </div>
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Vacancy tax to go national under new Labor tax

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The next budget could see an end to stamp duty with a land tax replacing it, potentially saving home buyers up to $40,000 in Sydney and $55,000 in Melbourne.
The costing will put land tax back up for debate when Parliament returns next week as the government looks at he Parliamentary Budget Office proposal, according to a report in the Sydney Morning Herald.
Housing affordability has been a focal point of both the federal and state governments, with Treasurer Scott Morrison talking of a housing affordability package in the May budget.
Both the NSW and Victorian governments are backing a reform of the stamp duty and Morrison has indicated his support for a transition to taxing land.
"When you talk about tax reform, this is far and away the biggest prize on offer," John Daley, the chief executive of independent think tank the Grattan Institute, was cited as saying by Fairfax Media.
Home buyers currently pay tens of thousands of dollars in stamp duty, which along with the deposit has made property almost unaffordable in Sydney and Melbourne.
Removing stamp duty and implementing an annual land tax on all newly purchased homes would help level the playing field and generate billions of dollars in annual returns to the NSW and Victorian budgets, while also relieving federal government spending over a 15-year-period, according to the proposal.
Under the policy submitted by the Greens and backed by the Grattan Institute and the Council of the Ageing, home buyers would no longer stump up to $40,000 in stamp duty when purchasing a property worth $1 million in Sydney. 
In Melbourne, a home buyer would save $55,000 stamp duty on a property of the same value.
Research from the Grattan Institute shows an annual tax of $1 per every $1000 of a home's value would cost the median Sydney household $845 a year in tax and the median Melbourne home $623 a year.
To offset the cost of losing lucrative stamp duty payments, the Commonwealth would have to loan money to the states. The loans would peak in 2020 when the hit to the budget bottom line would grow to $800 million. Rising land tax revenues would enable the states to pay back the loan by 2030.
The Parliamentary Budget Office estimates that in the next four years alone the tax would generate $2.3 billion in revenue for the states, but warned the overall costings were of low reliability due to the variations in number of properties sold across Australia each year.
Greens Leader Richard Di Natale said the prospect of property ownership had turned into a nightmare for many young people.
The median house price in Sydney is well over $1 million.
"Together with Capital Gains and negative gearing reforms, swapping stamp duty for a broad-based land tax would fix the broken system and make it easier for young people to live the Australian dream," said John Daley, The Grattan Institute.
In December, Morrison pushed the states to transition to a land tax at the state and federal treasurers meeting.
Recently, the Victorian government removed stamp duty for first home buyers for properties below $600,000.
In NSW, there are concessions on stamp duty for new properties under $650,000.
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Next budget suggestion could see an end to stamp duty

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Taxes, fees, levies and other government charges are "the lead in the saddlebag" for housing affordability, according to the Housing Industry Association's (HIA) chief executive – industry policy and media, Graham Wolfe.
“Housing affordability will not be addressed by political point scoring around negative gearing or capital gains tax,” he said.
“It’s a distracting and lazy debate and one where all three levels of government point a finger at each other, when it’s a fact that around 40% of the cost of a new home is taxation.”
“Increasing the supply of new housing is an obvious key to improving housing affordability.
“But retaining the enormous taxation burden on the cost of new homes is an anathema to addressing the problem.”
Wolfe is responsible for the lobbying group's policy development, media and advocacy functions and has been pushing the government to reform its taxation policies towards the industry.
“It’s the taxes and levies that are charged on every new home that overwhelmingly defeat all attempts to reduce housing costs,” he said.
“Yet housing, a basic requirement that all Australians should be able to access, is taxed more heavily than other parts of the economy.”
“State based stamp duty on the purchase of a typical new home alone adds a $91 per month burden on household mortgage repayments.”
“On average, families in NSW will pay considerably more – every month for the life of their home loan.
“Residential investment in housing has made a considerable contribution to arresting rental costs for thousands of families.
“Particularly in NSW where new supply has moderated rental increases over the past two years.”
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