The latest edition of the Housing Industry Association’s Stamp Duty Watch report has revealed that stamp duty is now costing the typical Australian family more than $1,200 in additional mortgage repayments annually, or $100 every month.
“The burden of stamp duty has grown much heavier during 2016, with strong dwelling price growth translating into disproportionately larger hikes in the stamp duty bill for homebuyers,” said Shane Garrett, senior economist at HIA.
Stamp duty is now setting ordinary homebuyers back by an average of $19,975. This consumes home purchase deposits and forces families to take on much larger mortgages, with total loan repayments typically increasing by approximately $36,000 over a 30-year term. “The cost is even greater when the impact of the higher Lenders’ Mortgage Insurance premiums is added on top,” said Garrett.
“Stamp duty hurts families and acts as a barrier to employment mobility and retirement downsizing. A plan for its removal needs to be at the centre of a national housing affordability strategy. The large states’ coffers have benefitted heavily from the stamp duty windfall in recent years. Perhaps now is the time to offer some relief,” concluded Garrett.
Based on dwelling prices from November 2016, the typical stamp duty bill nationwide is $19,975, which is an increase of 7.4% from a year earlier. Victoria currently has the highest average stamp duty bill ($28,538), followed by New South Wales ($24,965) and the Northern Territory ($20,805).
The stamp duty bill on the purchase of a median-priced home is $17,960 in the Australian Capital Territory, $15,830 in South Australia, and $15,390 in Western Australia.
Queensland remains the state with the lowest stamp for a typical purchase ($6,825). This is followed by Tasmania ($9,135), which has the second lowest stamp duty cost among the Aussie states.
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