Stamp duty payment methods should change
With state governments unlikely to remove property stamp duties, the head of RE/MAX in Western Australia said it’s time to consider new ways of helping home owners pay the tax.
“The simple solution is to allow homebuyers to spread the payment of stamp duty over 10 years and in so doing maintain the income for the states while minimizing the extra barrier to home purchase or repurchase,” said RE/MAX WA regional owner, Geoff Baldwin.
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“If a home owner were to sell before the stamp duty is repaid the outstanding balance would simply be due and payable at sale or settlement of the property.”
“To assist in the successful and financially viable introduction of this new system it would probably have to happen over several years with a reducing lump sum to be paid upon purchase and the rest over time.
Mr Baldwin said while he was opposed to the tax, state governments had become accustomed to receiving the millions of dollars of revenue generated from stamp duty for many decades, and as such were unlikely to have it removed.
His call for change comes hot on the heels of the federal government’s Tax Forum, which sparked fresh requests for the removal of stamp duty taxes.
“State governments have an obligation to ensure the ongoing viability of all industries and any measures taken to assist home purchase would provide a much needed boost to the established and new home sectors which are both massive employers," Mr Baldwin said.
