Vendor tax axing applauded
By BREE PRICE
IF JACKY COLLINS had known vendor tax was going to be abolished, she would never have sold her two investment properties.
The Alstonville resident and her husband had to fork out $10,000 after they sold houses in Goonellabah last December and April this year through Jon Lawrence Real Estate at Lismore Heights.
Vendor tax, a 2.25 per cent levy on the sale price of an investment property, was introduced in June last year.
However, new Premier Morris Iemma scrapped the tax on Tuesday.
Its abolition is effective on any contracts exchanged on or after Tuesday.
Mrs Collins said she was disappointed she had been caught in the middle.
"If we had known it was going to be abolished, we would have waited," she said. "We feel a little bit cheated.
"We sold when we thought the time was right in the market.
"We thought the tax was here for good ? we never thought they'd take it away again."
Mrs Collins said the properties had formed part of their superannuation and paying the vendor tax had put a dent in their retirement savings.
"It ate into what we could put away for our retirement," she said.
"We always seem to dip out when we try to get ahead.
"When we bought the properties, one in 1995 and one in 1998, the tax didn't exist.
"If it had, we would have thought twice about if it (buying investment properties)...was it going to be worth it."