Powered by MOMENTUM MEDIA
subscribe to our newsletter

Stamp duty must be eradicated, says senior economist

A senior economist has called for state governments to remove “inefficient” stamp duty taxes in order to ease housing affordability issues.

Speaking to Mortgage Business, Housing Industry Association (HIA) senior economist Geordan Murray said he believes that state governments should remove stamp duty, adding that first home buyers (FHBs) would benefit most from the move.

“One of the biggest factors for first home buyers is overcoming the huge burden of stamp duty,” Mr Murray told Mortgage Business.

“When first home buyers are entering the market, a huge proportion of their savings goes straight to paying their stamp duty,” the senior economist said. 

“Stamp duty has shown to be one of the most inefficient taxes in the economy, so anything that moves to eradicate stamp duty would be a step in the right direction. They should be looking to get rid of it.” 

Advertisement
Advertisement

According to the recent HIA Stamp Duty Watch report, stamp duty accounted for 26.1 per cent of overall taxation revenue, with the typical bill now sitting at around $20,587.

However, Mr Murray acknowledged that because of government dependence on the tax, stamp duty reform would need to take place over an “extended period” of time. 

“It’s phenomenal how reliant state governments are on stamp duty,” the economist continued.

“Getting rid of stamp duty wouldn’t be a simple proposition for governments; it is likely to be phased out over an extended period.

“The end goal should be to get rid of stamp duty altogether from residential property, but that would be a very long-term structural change that would need to take place.

PROMOTED CONTENT


“In the interim, focusing on concessions for home buyers, whether it is concessional rates or exemptions from stamp duty for first home buyers, would be great intermediary step.” 

Further, Mr Murray noted that governments must ensure that new housing supply “matches the needs of the growing population”.

[Related: Government must reduce upfront housing costs, says industry body]

 

Stamp duty must be eradicated, says senior economist
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.