Stamp out stamp duty

Stamp out stamp dutyAs Australia’s political leaders and treasurers meet this week to debate national tax reform, compelling new research puts the abolition of stamp duty high on the agenda.Stamp duty is universally recognised as one of the most economically damaging taxes.In a new report commissioned by the Property Council, Deloitte Access Economics reveals just how big the dividend from replacing it with more efficient revenue sources would be.A $3.3 billion boost to GDP, equivalent to the size of Australia’s entire dairy industry, two thirds of the car manufacturing sector and one quarter of the impact of international tourism.A $9.7 billion uplift in consumption, more than making up for the impact of a higher GST on households.Big numbers underscoring big benefits merely from changing from a bad tax to a better one.And with state and territory governments on track to reap a record $20 billion in stamp duty this financial year, it is now time to make the switch.Relying on such a harmful tax to bankroll their budgets is hurting families and holding back Australia’s economy.The economic benefits from moving to a more efficient revenue source are too great to ignore.The purpose of tax reform must be to grow the economy – and stamping out stamp duty will do just that.