Stamp duty has a huge impact on divorced women, a parliamentary inquiry has been told.

The Grattan Institute’s Brendan Coats told the inquiry only 34% of separated women manage to own a home again within five years and 44% within 10 years.

“The reason that it’s such a problem for older women in particular is because when you are 45 or 50 you may only have 15 years left in the workforce – you will find it very hard to purchase a home and pay off the loan including the stamp duty by the time you retire,” he says.

REA Group CEO Owen Wilson says stamp duty costs lead to traffic congestion, stops labour mobility and shuts first home buyers out of the market.

“The significant cost of stamp duty deters downsizers and locks people into homes that don’t suit their needs,” Wilson says.

People won’t move closer to a new job and instead accept a long commute as opposed to the cost of moving.