Time for stamp duty to go, says lobby group
A development lobby group is calling for the death of stamp duty.
The Urban Taskforce has called for a broad land tax to replace stamp duty, claiming the proposed tax would be more equitable and fair.
“State governments have become comfortable with the large income they get from stamp duty on the purchase of homes but they must look at better, more efficient ways to raise funds,” Urban Taskforce chief executive Chris Johnson said.
Johnson said the high cost of housing was being partly driven by stamp duty taxes levied by state governments. He claimed the idea of an ongoing land tax had widespread support from business groups, social services advocates and the development industry.
The Urban Taskforce said a land tax would be spread over a wider base of people to ease the up-front financial burden on would-be home buyers, while still providing a steady stream of revenue for state governments. He said broad-based land taxes also had the benefit of encouraging urban consolidation.
“This tax encourages a more environmentally sustainable urban form,” Johnson said.
How much cost does stamp duty add?
To see how much stamp duty can add to the cost of buying a home, check out our calculator below.