SYKES – TAX BACK DOWN – AFTER NATIONALS EXPOSE FLAWS

The Nationals Member for Benalla, Bill Sykes, said The Nationals have succeeded in getting the Bracks’ Government to back down on plans to unfairly impose increased stamp duty on vendor terms property contracts.

Dr Sykes said, “Euroa solicitor, Michael Tehan, alerted me to the Government’s planned requirement for stamp duty to be paid on the interest as well as the principal in vendor financed property sales.

“This move by the Government would have been grossly unfair and discriminatory against vender finance when alternative sources of finance do not attract stamp duty on interest paid.

“In July, I spoke in Parliament against this taxation. The Nationals Spokesperson for Treasury and Finance, Bill Baxter, has made several representations on the issue, speaking in Parliament and to the Treasurer, John Brumby, as soon as the State Revenue Office’s intentions became clear.

Dr Sykes continued, “Mr Brumby advised The Nationals that duty will not be assessed on the interest component unless it is apparent that a contrivance has been entered into (for example when the principal price is obviously undervalued and the interest excessively high - a possible avenue for tax evasion).

“Like my Nationals colleague, Mr Baxter, I fully support measures to counteract and expose tax avoidance but not at the expense of those that are doing the right thing.

Dr Sykes concluded, “The Nationals success on this issue is another example of why it so important that people contact us when flawed or unjust decisions are being considered or implemented. We can work together to encourage the Bracks’ Government to use some common sense.

Media contact: Bill Sykes (03) 5762 2100 or 0427 624 989