Powered by MOMENTUM MEDIA
subscribe to our newsletter

Government commitment to stamp duty ‘baffling’

State governments have been urged to scrap stamp duty in light of new research, which has highlighted its impact on housing affordability.

Last week, property research group CoreLogic released its 2019 Perceptions of Housing Affordability report — which includes the findings of a survey of 2,220 Australians aged between 18-69 — revealing that 83 per cent of non-property owners are still worried about being able to afford their first home, despite the recent fall in home values.

The greatest obstacle to homeownership cited by respondents was securing a deposit (47 per cent), followed by receiving approval for a home loan (45 per cent), and stamp duty costs (44 per cent).

Reflecting on the research following the release of the report, CoreLogic’s head of research, Tim Lawless, called on state governments to scrap stamp duty as a means to lightening the financial burden associated with entering the property market.  

Mr Lawless encouraged state governments to follow the ACT’s suit by introducing a land tax as an alternative to transaction-based measures that are heavily influenced by trends in the housing market.

Advertisement
Advertisement

“In some markets, if you're not a first home buyer (FHB), or don't satisfy the criteria for a stamp duty concession, you're paying around $30,000 just to make a transaction in the marketplace,” he said.

“The fact that we've only seen one of our states and territories starting to transition away from stamp duty is still pretty baffling to me, particularly when you see state governments moving through the fluctuations and the ebbs and flows of the marketplace, which has a profound impact on stamp duty revenues.”

In July, the Housing Industry Association (HIA) released its Stamp Duty Watch report, which revealed that home buyers paid $18.9 billion in stamp duty across Australia in the 2018-19 financial year, down from $21.3 billion the previous year.

According to the HIA, majority of the reduction in stamp duty revenues is “due to the downturn in the housing market”, which has been marked by a decline in the value of dwelling approvals, falling home prices and a drop in home loan approvals.

[Related: States lose billions in revenue to housing market downturn]

PROMOTED CONTENT


Government commitment to stamp duty ‘baffling’
mortgagebusiness

Grow your business exponentially in 2022!

Discover the right strategies to build a more structured, efficient and profitable businesses at The Adviser’s 2022 Business Accelerator Program.

Visit the website here to secure your ticket.

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 cash rate for the last month of 2021 has been confirmed, as analysts continue to speculate on when it will move next. ...

The big four bank has revealed plans to purchase a personal finance management platform from AMP, with plans to integrate the tool into its ...

The federal Treasurer has expressed concerns at the housing market running hot, but he is not sure if APRA will take further lending interve...

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!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

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