Stamp Duty Savings - More Than $2 Million for CanterburyAssociate Minister of Revenue
The slashing of stamp duty in last week's Budget will leave more than $2 million in farmer's hands in Canterbury, says the MP for Banks Peninsula, David Carter.
Stamp duties on the purchase of rural and commercial properties were abolished from midnight last Thursday. Mr Carter says Canterbury people and the local economy will benefit significantly from the abolition of stamp duty.
"Figures show that in 1997, 278 Canterbury farms were sold. If stamp duty hadn't been around then, over $2.2 million would have remained in farmer's hands and in the region, instead of going to Government coffers," says Mr Carter.
"Federated Farmers estimates farmers on average will now be left with an extra $2800 a year which will be a real boost for farmer's incomes."
Mr Carter said the abolition of stamp duty would help young farmers starting out, by lowering the costs of purchasing their first farm.
"No longer will the purchaser of a farm have to pay an extra $14,000 to buy an average $750,000 farm. Getting rid of this unnecessary tax will reduce the compliance costs for farmers and will ensure the future prosperity of the rural sector by reducing taxes and raising incomes."
Mr Carter said some media had inadvertently implied the abolition of stamp duty would help the sellers of farms.
"It will be the young farmers, the new farmers and those attempting to increase their holdings that will benefit because of the abolition of stamp duty. The purchaser faces reduced costs, not the seller."