You know that feeling like screaming into the wind.
Experts for years have been advising any government that will listen that stamp duty is a major drag on the economy. Most recently the Henry review said stamp duty has no place in a modern tax system. This morning’s AFR reports that as part of the Federal v State tax debate that a land tax swap for stamp duty is on the table. Read here….
I have argued for stamp duty’s removal several times in this blog so I wont repeat it all again but you can read it here…
So fingers crossed we are getting closer and if you have any opportunity to argue the case for why stamp duty is a country killer here a couple of quick points.
- Every recent tax review has slammed it as a draconian and inequitable tax
- It is a disincentive for underutilised property to be sold to a more productive user (think downsizer vs first home buyer)
- It is a tax on relocating our labor force to where it is needed more.
- It taxes first home buyers several times trying to buy a small place and trade up.
- It taxes only people who buy real estate rather than hold real estate.
We have to pay tax of course but the State Governments are addicted to this one and they desperately need to kick the habit.
