The Property Council of Australia has released a statement calling for state governments to reconsider their stance on the implementation of stamp duty.
Latest figures from the New South Wales government have revealed that the state is on its way to receiving a record revenue from stamp duty this year: 8 billion dollars, more than double what it was four years ago.
“Stamp duty is our most damaging tax and hurts homebuyers, businesses and the economy,” says NSW Executive Director Glenn Byres.
“NSW needs to put stamp duty abolition on the agenda as part of the national tax reform debate given it is our most damaging and inefficient tax.”
Stamping out unnecessary taxes
The Property Council argues that there are viable alternatives to the current convoluted tax.
“As the state’s biggest industry, we’re keen to see a tax reform agenda that unlocks growth, creates jobs and helps create a better deal for homebuyers and business,” says Mr Byres.
“Switching away from bad taxes like stamp duty to more efficient revenue sources like the GST would deliver it.”
This continued pressure from the Property Council and other major property industry bodies such as the Housing Industry Association may result in governments rethinking their application of stamp duty on property. Investors and homebuyers may soon find stamp duty to be a thing of the past.
Advice on stamp tax
Those considering taking out a mortgage are recommended to contact a mortgage broker to figure out how stamp duty may be affecting their purchasing power. With each state having different thresholds and percentages, it is imperative to ensure that you are paying the amount correct for your local government.
You can contact a Smartline Mortgage Adviser on 13 14 97 for mortgage advice. Or complete ourcall request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.