TIME TO AXE THE TAX TO ASSIST HOUSING AFFORDABILITY

July 20th,2021

Real Estate Institute of Australia (REIA) has found the NHFIC report Stamp Duty: Benefits and Challenges solidifies what real estate agents already know: property taxation in the form of stamp or transfer duties and land tax is one of the largest barriers to housing affordability and consistently performing markets.

REIA president, Adrian Kelly said families across all the states and territories, except the ACT, are paying more stamp duty today than 20 years ago and that is time to get serious about stamp duty reform.
“Politicians cannot on one hand gripe about housing affordability; and then on the other say we need this income from home buyers and owners to fund public sector operations.
“Calls from the NSW Government as reported by the Australian today – with the Federal Governments to set up a productivity fund to incentivise stamp duty reform – is one sensible approach to make our Federation competitive and get this important reform going in earnest.

“REIA renews our call on the Council of Federal Financial Relations to take on board this issue seriously and nationally rather than just shift this responsibility off to States and Territories,” he said.
• Mr Kelly cautioned that the assumed alternative in the report – the introduction of a land tax – is not necessarily a panacea and that State Governments should reconsider their focus on taxing Australian homes and households to fund their coffers.