$163bn stamp duty bonanza must tally in tax debate
Homebuyers and business have handed over a total of $163 billion in stamp duty payments on property since 2000-01, according to a new analysis of budget records.
Property Council of Australia research shows that nationwide, actual state and territory government revenue from stamp duties on property rose from $6.4 billion for the 2000-01 financial year, to $16 billion in 2013-14.
Australia’s states and territories are collectively on track to reap a record $20 billion in conveyancing stamp duty for the current financial year alone, a threefold increase in 14 years.
Chief Executive Ken Morrison said the burgeoning tax take from stamp duty, which Federal Treasury has identified as the tax with the highest cost to economic growth and living standards, must be on the table when federal, state and territory leaders meet this week.
“State and territory governments are reaping record gains from the growing stamp duty impost at the expense of homebuyers, housing affordability and the economy,” Mr Morrison said.
“Relying on property buyers to bankroll state and territory budgets to the tune of some $20 billion a year is hurting families and holding back Australia’s economy.
“Stamp duty has spiralled out of control, stymying the creation of the new jobs and growth our nation needs.
“If we are to have a genuine national tax reform debate that examines ways to grow the economy, and is guided by principles of fairness, then stamp duty must be on the agenda.
“Stamp duty is a fundamentally unfair tax that hits everyday Australians hardest while also being one of the nation’s most inefficient taxes, acting as a handbrake on economic growth.
“Much of the focus in the national tax debate has been on areas of Commonwealth revenue and expenditure but the spotlight needs to shine both ways.
“In two decades average stamp duty bills have increased around the country by between 527% (Hobart) and 795% (Melbourne). Homebuyers have a right to question what they are getting in return for these astronomical increases.
“The majority of Australians agree that stamp duty is the most unfair tax of all and a major barrier to buying a home.”
A comprehensive survey Community attitudes towards tax reform undertaken by Newgate Research earlier this year of 1,957 respondents nationwide found that nine out of ten Australians surveyed supported tax reform, which made the system simpler and fairer.
Three-quarters of Australians agreed that stamp duty is driving up home prices and making it unaffordable for young people to own their own home.
Over two thirds of the community (70%) supported the idea of abolishing stamp duty with the same number believing that the level of tax on people’s homes is too high.
Media contact: Fiona Benson | M 0407 294 620 E [email protected]