The Property Council of Australia has called for stamp duty to be abolished to encourage labour movement.
The comments follow the release of the Building Australia’s Advantages report by the Business Council of Australia, which says removing barriers such as stamp duty will encourage more workers to relocate for work opportunities to up and coming employment hubs.
“Today’s report by the BCA reinforces what we have been saying for years – stamp duty is a ball and chain that deters many Australians from relocating for work,” Property Council of Australia Chief Executive Ken Morrison said.
Morrison said mobility was essential as the country transitions away from the mining boom toward new areas of investment.
“As new areas become employment hubs, we need to make sure we have the right people in the
right places and that means assisting Australians to relocate to where the jobs are,” Morrison said.
Morrison argued that the additional costs of moving such as stamp duty may be the make or break for some families.
“For people already feeling the pinch, particularly those looking for work, the additional hit to savings of stamp duty costs makes the decision to relocate a last resort. The Property Council has consistently argued that stamp duty is a handbrake on workforce participation and locks many Australians into housing and locations that do not suit their needs. Abolishing stamp duty is essential to encouraging greater productivity in our changing economy and must be considered as part of the Federal Government’s tax reform agenda,” Morrison said.