A smarter tax system would leave households $20 a week better off

New research undertaken by Deloitte Access Economics has confirmed that abolishing stamp duty and replacing it with a fairer and more efficient tax will deliver big dividends to the economy and households.

“Stamp duty is universally recognised as one of the most inefficient and harmful taxes and this new study reveals just how much it really hurts not just homebuyers but the whole economy,” said Property Council Executive Director Chris Mountford.

“The report shows that replacing stamp duty with a more efficient tax would increase the size of the Australian economy by $3.3 billion.

“That is the equivalent of doubling the size of Australia’s dairy industry.

“The boost to consumption from abolishing stamp duty is so significant that even replacing it with GST revenue would see households more than compensated.

“Deloitte’s modelling calculates that households would on average be better off by an extra $20 per week if governments collected the equivalent amount of tax from GST rather than stamp duty. That is more than half of the average weekly household expenditure on fuel and power.

“This report confirms that abolishing stamp duty would grow the economy and improve the wellbeing of all Australians. Therefore it is a no-brainer that stamp duty abolition should be on the agenda when federal, state and territory leaders meet this week to discuss tax reform.

“Stamp duty costs Australians and costs the economy. It’s a barrier to economic growth and stops people and businesses making the best property decisions for their needs.

“Governments must end their reliance on what is one of Australia’s worst taxes.”