With stamp duty on residential homes blowing out by 31% in the last financial year, the Real Estate Institute of Australia (REIA) has called on government to make changes.
Rob Druitt, president, Real Estate Institute of Western Australia (REIWA), wants WA’s stamp duty rates – among the most expensive in the country – to be reined in.
“Treasury has consistently failed to accurately estimate the level of tax revenue it would receive from the current high levels of economic growth,” he said, adding that the result of this is an overshoot in estimated receipts of conveyance duty “by an average of more than 40% each year for the last five years”.
Instead of receiving $6bn in revenue from stamp duty on conveyances for the financial year of 2003/04 through to today, Treasury now estimates that receipts will top $8.5bn for this period, Druitt said.
Meanwhile, WA homeowners upgrading to a new property of around $500,000 are paying stamp duty of nearly $21,000.
“In Brisbane stamp duty on the same priced house is only half that much, while even Sydney’s stamp duty on such a home is $3,000 cheaper than in Perth,” he added.
“The government’s own mid-year review clearly shows that it’s affordable for the Treasurer to look at real reform of conveyance duty thresholds which haven’t been adjusted since 1983.
“With house prices having grown so dramatically over the last five years, the old scale of stamp duty is completely out of kilter with current prices. The government must address the exceptional bracket creep in stamp duty that has resulted from a strong market trapped in a 25-year-old tax scale.”
REIWA recommends a package of property tax reforms costing around $400m. Druitt added that the Institute’s proposal is fiscally responsible and represents a return to property buyers for the over-taxation which has prevailed for the last five years.
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 with your investment property
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 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 and appointment is free.
We value your privacy and treat all your information seriously - you can check out