Government called on to reform stamp duty
State and territory governments must reform stamp duty if housing affordability is to be addressed, the Real Estate Institute of Australia (REIA) has claimed.
“Stamp duty has long been identified as the most inefficient of all state taxes,” said the president of the REIA, Pamela Bennett.
“Stamp duty represents additional costs to property transactions, thereby discouraging housing turnover and distorting choices between renting and buying and between moving house and renovating.”
The REIA said each state and territory government would address the issue with their respective Cabinets before the Council of Australian Governments (COAG) meets in December, when tax reform will be on the agenda.
Established in 1992, the COAG aims to coordinate activity between the federal government and the six state and two territory governments.
“Discussion is promising but action is required as a reform of stamp duty would increase GDP outcomes and productivity and greatly improve housing affordability,” added Ms Bennett.
“The Henry Tax Review recommended that stamp duty be prioritised in any tax reform agenda and REIA would like to see all governments address the matter in a concerted and coordinated way.”
“While stamp duty falls under state and territory jurisdiction, leadership is required from the federal government. We need a mature discussion at COAG to capitalise on the initiative being shown by state and territory treasurers.”
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- <p>All I know is that Governments don't get rid of taxes very often. Some property purchases require stamp duty in excess of $40,000 to be paid which is a hell of lot of money and hard to justify. If the governement couldn't reduce the tax then maybe they could collect the fee over a few years with the first payment due at the end of the financial year in which the property was purchased - deal with it at tax time rather than a lump sum payment up front which I think would make a big difference to people considering buying a home.</p>0
- <p>How ridiculous to suggest an annual land tax on everyones property!!Stamp duty is a one off fee when you purchase. There are enough other charges; Council Rates etc already. i think Agent selling commissions should be reviewed as well! This is often another reason people choose not to sell.</p>0
- <p>Stamp duty was one of those taxes that was to go when GST was introduced (but maybe it was not a "core" promise?) One alternative to stamp duty is to put a land tax on everyone's property to be paid each year. That would be a creeping up tax and not avoidable. It would depend on a Government department setting the rate and not set by market forces.</p>0
- <p>Lana i really hope all falls in olace for you, the government seems to wipe its hands of the people who truly need a little help as they are the ones who are trying to help themselves. My own experience has found me to get no help while bringing my daughter up as a single mum,working and buying a home as my divorce, maybe if i had stayed home,lived in a rental and had arse out of pants they would have come to my aid, so i havnt got anything to to say about centrelink,government or child support ect</p>0
- <p>Stamp Duty is a stumbling block for those trying to rebuild after a marriage/relationship breakup.Especially if you're 50 or older.You don't qualify as a 'First Home Owner'<br>It is hard scraping together a 5% or 10% deposit & legals on one wage and then having to add Stamp Duty on top makes it nearly impossible if you have come out of marriage with no money and only debt, as many people do.Rents are high in Sydney and I could afford a loan repayment with the rent I pay but it is getting the upfront deposit and stamp duty together that is the killer.I am one of many caught in the generation where super was NOT compulsory and was actually frowned on as a poor investment. When compulsory super was brought in many were disadvantage as a woman working part time, as you had to work a minimum of 20hrs pw to receive super. So retirement will not happen with the small amount I have in super.<br>Removal of stamp duty would bring hope I could by my own place and work until it is paid off.</p>0
