Calls to abolish stamp duty are gaining traction again, with the Real Estate Institute of Australia (REIA) advocating for its removal—at least for older Australians looking to downsize.

REIA President Leanne Pilkington argues that stamp duty significantly increases transaction costs, discouraging property turnover and limiting investment opportunities. Removing it could free up larger homes for families while creating more movement in the market.

She believes transitioning from stamp duty to a land tax would be one of the most impactful real estate reforms.

However, she acknowledges that most state governments are reluctant to introduce such a major change.

“While the economic benefits are clear, most state governments remain hesitant to implement such a major change,” she says.

She highlights that stamp duty is a major financial barrier to buying and selling property.

“You’re looking at tens of thousands of dollars just in tax every time you move,” she says.

“The impact is that people stay put in homes that don’t suit them anymore. Older people stick around in large homes while young families squeeze into tiny apartments because the cost of moving is just too high.”

In a recent move, Queensland scrapped stamp duty for first-home buyers purchasing new builds, signalling a step toward property tax reform.