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.”
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