Stamp duty spirals out of control

The abolition of stamp duty – too long ignored in the national housing affordability debate – is now well and truly on the agenda.

And for good reason.

With new Property Council research showing increases of almost 800% in the last decade, stamp duty bills have well and truly spiralled out of control.

This runaway tax dominated the conversation on nearly every major news outlet across the country on Monday and shaped the day’s debate.

Communities and commentators alike were shocked at how much homebuyers and businesses are being stung.

Disappointingly a trio of former premiers missed the point yesterday and accused the Property Council of self-interest.

What our submission to the federal government’s tax reform process makes clear is that this is a tax reform plan to grow the economy.

Treasury and two major tax reviews have concluded that conveyancing stamp duty is Australia’s most economically harmful tax.

In fact Treasury's own analysis shows that for every dollar of stamp duty revenue collected, Australia’s economic welfare is reduced by 73 cents. That’s 50 per cent worse than the impact of company tax, and three and a half times worse than GST or income tax.

It’s a cost Australia certainly can’t afford.