Stamp Duty. Is it time to go?
The e61 Institute and PropTrack are shaking things up with their latest bombshell. Brace yourself as we uncover the harsh truth: stamp duty isn't just a hefty tax – it's an outdated and inefficient one.
Cast your mind back four decades, when buying a property meant sacrificing a month's wages to stamp duty. Fast forward to today, and the numbers are staggering. Sydney and Melbourne residents are forking over a whopping six months' worth of earnings, with Adelaide and Brisbane not far behind.
Angus Moore, the economic whiz at PropTrack, breaks it down. Property prices have skyrocketed, while incomes have barely budged. Result? Stamp duty is stuck in the past, with brackets that fail to keep pace with soaring property values. Translation: the more you spend, the more they take.
But hold on, it gets worse. Stamp duty isn't just a pain in the wallet; it's a roadblock to economic growth. According to e61 Institute and PropTrack's research, every increase in stamp duty rates sends home purchases plummeting. Case in point? Queensland's 2011 hike slashed home purchases by a staggering 7.2% for every percentage point increase.
So, what's the solution? It's time to ditch stamp duty and embrace the reigning champ: land tax. Why? It's a steady revenue stream, fairer, greener, and far less hassle.
Thinking of diving into the property market? Let me be your guide. Together, we'll navigate the murky waters of stamp duty and turn your property dreams into reality – without the nightmares.
