NSW homebuyers hit with new property tax

Homebuyers in New South Wales are to be hit with a new property tax that could significantly hike up the price of a standard house.

According to the Daily Telegraph, the tax – which will add between $200 and $1,000 to the cost of buying a home – was "quietly slipped through" the NSW Upper House yesterday (May 12th), in what the newspaper describes as a "sneaky" move carried out in the shadow of this week’s federal Budget announcement.

The tax will apply on transfer fees for properties worth more than $500,000 and will also affect commercial investors by raising taxes on typical CBD office space.

A senior federal Labor source complained that the move has served to undermine the federal government’s aim of reducing fears about big-taxing Labor governments.

"That they tried to hide it under the coverage of our Budget makes it worse," the source said.

The news may interest Aussies who wish to compare home loans in search of the most affordable options. New figures released this week showed that demand for home loans fell for the sixth consecutive month in March 2010.

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