$21bn stamp duty bonanza must tally in tax debate
Homebuyers in Western Australia have handed over more than $21.3 billion in stamp duty payments on property since 2000-01, according to a new analysis of budget records.
In Western Australia revenue from stamp duty on property more than tripled from $624 million for the 2000-01 financial year to $1.97 billion in 2013-14, with budget forecasts showing it is heading back to record territory and is set to top $2.2 billion this year.
Property Council of Australia research shows that 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.
WA Executive Director Joe Lenzo 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.
“The Western Australian government is reaping huge gains from the growing stamp duty impost at the expense of homebuyers, housing affordability and the economy,” Mr Lenzo said.
“Relying on homebuyers to bankroll the state’s budget to the tune of more than $2 billion a year is hurting families and holding back Western Australia’s economy.
“Stamp duty has spiralled out of control, stymying the creation of the new jobs and growth our state 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.
“In two decades average stamp duty costs have increased by 738 per cent in Perth.
“Homebuyers have a right to question what they are getting in return for these astronomical increases.
“Property is Western Australia’s biggest employer and pays 36.7% of all state taxes, local government, fees and charges making it the largest single industry contributor.”
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: Joe Lenzo | M 0419 044 768 E [email protected]