As debate rages about the so-called death tax introduced by the Government’s proposed tax reform, the 1999 GST accord with the States may mean a double whammy for those dying in Queensland, WA or NT.
In the horse trade that became John Howard’s GST reform, the States agreed to drop stamp duties on the sale of businesses. Only problem is, while NSW, Victoria, Tasmania, ACT and South Australia eventually legislated for it, the other states and territories didn’t.
Selling a business in Queensland for, say, $1m costs the buyer an extra $38,000, in WA, $44,000. Both on a progressive scale.
This is on top of the new capital gains tax rules of 30% tax on the net gains of a business when transferred as part of a testate transaction, but only if you pick the right state to die in.
Get the popcorn, let another state of GST battle commence…
Kim Wingerei is a businessman turned writer and commentator. He is passionate about free speech, human rights, democracy and the politics of change. Originally from Norway, Kim has lived in Australia for 30 years. Author of ‘Why Democracy is Broken – A Blueprint for Change’.