Calls for the abolition of stamp duty are once again on the agenda with the Real Estate Institute of Australia calling for it to be at least removed from older Australians who want to downsize.
REIA president Leanne Pilkington says it adds substantially to the cost of transacting and is stopping some people from moving and freeing up larger homes for families.
She says the transition from stamp duty to land tax could be one of the most significant reforms in real estate policy but she admits it is not on the radar of many State Governments.
“While the economic benefits are clear, most state governments remain hesitant to implement such a major change,” she says.
Pilkington says it is a real financial hindrance to buying and selling.
“Effectively, 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.”
This week Queensland axed stamp duty for all first-home buyers purchasing new builds.