Treasurers should progress real tax reform
Australia’s treasurers have the opportunity to achieve concrete progress on reforming the taxation system when they meet in Canberra today.
Property Council Chief Executive Ken Morrison said the meeting of state and territory treasurers in Canberra needs to settle on live options for real tax reform.
“The starting point for tax reform needs to be a better tax mix to stimulate the economy and that means finding a pathway to remove stamp duty, our most inefficient tax,” Mr Morrison said.
“Treasury’s own analysis shows stamp duty has a far bigger cost to the economy and jobs than company tax, personal income tax or the GST.
“Stamp duty is a barrier to home ownership, it hampers labour mobility and limits the choice for Australians looking to right-size their housing.
“With housing affordability a top concern for an increasing number of Australians, stamp duty is a colonial relic the country can no longer afford.
“Abolishing stamp duty would take the pressure off prices and boost economic activity.
“Australia’s treasurers have the opportunity to mark out a concrete pathway to phase out stamp duty to grow the economy and address housing affordability.”
Mr Morrison said this was one of a number of initiatives that could improve housing affordability.
“Boosting the supply of new housing would not only improve affordability, it would also create jobs and boost economic activity,” Mr Morrison said.
“Some 40 different trades are used in the construction of every new home – delivering local jobs in growth areas.
“Treasurers should seriously consider the introduction of a new incentives to encourage states and territories to reform their planning systems and promote housing supply.
“It’s a model that has achieved success in bringing on critical infrastructure investments.
“It’s time to put options on the table that have a real chance of succeeding and moving Australia closer to genuine reform outcomes.”
Media contact: Fiona Benson |M 0407 294 620 |E [email protected]