Property taxes such as stamp duty are inefficient and should be abolished, according to the Real Estate Institute of Australia (REIA).
“The next government needs to make the tough decisions. Action, not rhetoric, is what’s needed now,” said REIA president Peter Bushby.
“Stamp duties on property transfers are not only inefficient but they are costly to manage, reduce national competitiveness and productivity and are unequally and unfairly applied.”
Bushby argues that taxes set by all three tiers of government have an impact on housing affordability and that stamp duties, land taxes, risk premiums and finance charges push up the cost of new housing and restrict supply.
“The average tax burden on the new housing sector is estimated at around 31% of the value of output. It’s estimated that the removal of some inefficient taxes could reduce the cost of housing by around 10%.”
The REIA is calling for the establishment of an independent, on-going Tax Reform Review Group, comprising industry and welfare groups, to have an advisory role to government and the Parliament on a schedule for tax reform.”
“We welcome comments by the opposition that all taxes, including GST, will be reviewed by the Productivity Commission and that unnecessary taxes will be abolished. This will encourage business to grow and create more jobs,” said Bushby.
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