Double death tax? The GST accord rises from the grave
While debate continues apace over the so-called death tax introduced by the government’s proposed tax reform, the 1999 GST deal with the states could spell double whammy for those who die in Queensland, WA or the NT.
In the horse trading that became John Howard’s GST reform, States agreed to reduce stamp duties on the sale of businesses. The only problem is that while NSW, Victoria, Tasmania, the ACT and South Australia eventually legislated, other states and territories did not.
In Queensland, selling a business for, say, $1 million costs the buyer an extra $38,000, while in Western Australia it costs $44,000. Both are on a progressive scale.
This is in addition to new capital gains tax rules that call for a 30% tax on a business’s net earnings when transferred as part of a will, but only if you choose the right state to die in.
Grab the popcorn, let another version of the GST war begin…
Dire warning! Like negative gear? Buy shares!
Kim Wingerei is a businessman turned author and commentator. He is passionate about freedom of expression, 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’.
