“Unjust” stamp duty can’t be abolished in short term
Stamp duty has been labelled an “unjust” tax by a property lobby looking to abolish the levy.
The Real Estate Institute of New South Wales (REINSW) has called for an end to stamp duty, but has conceded an abolition of the tex in the short term is not possible.
REINSW president John Cunningham called the tax “unjust, inefficient and market distorting”, but said abolishing the tax will require a national initiative to introduce broad based taxes to make up funding shortfalls.
“Nonetheless there are things we can do, and must do now. The NSW Government has left stamp duty rates unchanged for more than 30 years. They are reaping the rewards at the expense of ordinary NSW citizens,” Cunningham said.
Cunningham called on both the NSW Treasurer and Federal Treasurer Scott Morrison to lift tax thresholds.
“This barrier to entry has become unjust and disproportionate over time. It is too much and is distorting social fortunes and creating a range of social challenges and consequences for young, middle aged and elderly people,” Cunningham said.
Cunningham pointed to Domain Group research showing the stamp duty payable on a median priced Sydney house would be $31,827.50.
“Now is the time to review stamp duty bracket creep and create an environment that is fair and just for all,” Cunningham said.