A paper by the National Housing Finance and Investment Corporation says abolishing stamp duty would encourage more efficient use of Australia’s housing stock.
It says it would increase the number of property transactions and ensure more stability around state and territory government revenues.
The report suggests the typical household in every state and territory, except the ACT, would be better off paying land tax on a median priced property than stamp duty. NHFIC CEO Nathan Dal Bon says owners will be more willing to sell up and downsize or upsize if there isn’t the added financial burden of stamp duty, resulting in more efficient use of current housing stock.
Rising house prices mean all states and territories except the ACT have experienced substantial increases in the effective rate of stamp duty in the past 20 years.