Australians are being hit with ever increasing stamp duty charges according to construction lobby group the Housing Industry Association (HIA).
According to the HIA Winter 2015 Stamp Duty Watch report, property buyers in a number of states have been burdened by increased stamp duty costs since the end of 2014, which are resulting in up to $40,000 being added to mortgage repayments.
“Since our last edition of Stamp Duty Watch late in 2014, the burden of Australia’s most inefficient tax has become heavier in most states,” HIA senior economist Shane Garrett said.
“In New South Wales, Victoria and the Northern Territory, the typical stamp duty bill now amounts to over $20,000. Stamp duty bills have increased particularly sharply in NSW and Victoria since late last year,” he said.
Stamp Duty on Median Price Dwelling for non first home buyer at June 2015
||New South Wales
Source: HIA Stamp Duty Watch, Winter 2015
Garrett said the increases show stamp duty impedes the supply of affordable housing and that research shows there are more efficient methods governments can use to raise revenue.
“It is a particularly onerous tax on new housing - in many instances stamp duty is paid multiple times as transactions occur during the new dwelling’s life cycle. This is one example of the inequitable tax treatment of new housing relative to existing property,” he said.
“Independent research conducted for HIA last year provided compelling evidence of the benefits to Australian living standards and economic growth from the replacement of stamp duty with more efficient, broad-based revenue raising measures.”
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out