Australia’s Property market Harmed by Excessive Stamp Duty

Posted: October 27, 2011 in The Blogs

Central Australia – a call to erase stamp duty on all transactions on properties (land, business, home) was reechoed by the the Real Estate Institute of Australia (REIA) to the government of Australia. Ms. Amanda Lynch, the REIA chief executive, exclaimed at the national Tax Forum that the current cost of stamp duty caused housing, land and property ownership is crippling most first home buyers and seems to be totally expensive for property investors.

Today, The stamp duty’s cost across Australia are ceiling high, varying from four percent to six percent of the total price of an average house – literally means that it is really not appropriate for the budget of average Australians. More to that, the existence of high property prices together with the high cost of home loans are also additional burden to the average home buyers and property investors.

REIA chief executive Amanda Lynch had factual figures stating that incentives alloted for first home buyers lack uniformity averaging from zero stamp duty concessions in Tasmania to concessions which are only available for new homes that values up to $600,00 in New South Wales. In other part of Australia, there is also a $250,000 limit on stamp duty concessions in South Australia.

The REIA chief executive also pinpointed that the stamp duty  is a huge barrier for Australians who want to avail affordable homes and first home buyers. “Stamp duty is a huge blunder to labor mobility. It has a tremendous effect against those who want to downsize, people who are in a tight budget and even those who move to where their jobs are, most likely the elderly and family starters,” added by the REIA chief executive.

In the latest Deposit Power Housing Affordability Report of REIA, evidence that measures need to be suitably written to aid first home buyers is strongly highlighted. The Deposit Power Housing Affordability Report exhibited a great decline in housing affordability over the past twelve months and also the number of first home buyers in the market, from 30 percent in 2009 to 15 in percentage at present.

“The REIA connotes more efficient revenue sources as replacement of inefficient and expensive property taxes. We all support a multiple review of the alternative solution,” noted by REIA chief executive.

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Comments
  1. A stamp duty is a tax imposed on the price paid for your property. Home buyers will pay this cost upfront and it should be factored into the property’s total purchase price.

  2. […] Australia’s Property market Harmed by Excessive Stamp Duty […]

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