Auctions cancelled as vendors punt on tax change

Sydney investors are cancelling auctions in the hope that the vendor tax might be changed or abandoned. The incoming premier, Morris Iemma, has said the 2.25per cent vendor tax on investment property sales was “one of the issues that mattered to the people of NSW” and that he had “ideas about the tax and the way forward”. Last year the tax raised $340 million, short of original estimates, and this year is expected to bring in $358 million.