Hockey right to call out volatile, anti-growth tax
The Property Council of Australia welcomes comments from Federal Treasurer Joe Hockey urging the states and territories to undertake genuine reform and move to a tax mix that best encourages growth.
“Mr Hockey is absolutely right to single out stamp duty as an unsustainable source of revenue for state and territory governments,” Chief Executive Ken Morrison said.
“It is a roller coaster tax that has to go, great on the way up but a nightmare on the way down and completely unreliable when it comes to funding essential public services like health and education.
“It’s an anti-growth tax that acts as a handbrake on economic activity.
“Modelling undertaken by ACIL Allen Consulting shows a fairer mix of taxes would give the states a more reliable income stream, improve Australia’s economic welfare by up to $10 billion and increase revenue to governments by up to $7.8 billion providing the means to look after lower income households.
“Stamp duty is just adding to costs and putting home ownership further out of reach at a time when housing affordability is already a major challenge for most Australians.
“It’s a defunct tax that has spiralled out of control with Australians paying an alarming 800% more now in stamp duty than they did 20 years ago.
“Australia can’t afford stamp duty – it’s as simple as that – and we urge state and territory governments to use this opportunity to achieve real, lasting reform to our tax system.”
Media contact: Fiona Benson | M 0407 294 620 | E [email protected]