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Stamp duty back in firing line

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Australian Broker | 07 Apr 2017, 08:25 AM Agree 0
Two major real estate organisations have recommended the government curb or abolish excessive fees for property buyers
  • Simon | 07 Apr 2017, 09:01 AM Agree 0
    Thank you Miklos, a topic that is a constant bugbear of mine. Quite simply, Stamp Duty is a TAX on individual wealth creation.

    IMO, it should be abolished entirely, replaced by substantially increased Land Tax (or equivalent measure - with exemption/reductions for PPoR).

    Remove the barriers to wealth creation, impose restrictions (additional costs) on wealth retention.
  • Gotta love the property 'council' | 07 Apr 2017, 12:41 PM Agree 0
    Well well.. property council in favour of something that increases 'property turn over'.

    Each time you move property a real estate agent gets paid. Twice.

    (once on the sale, once on the purchase). That's a big cost of moving.

    Would they consider banning real estate commissions? At least stamp duty pays for useful stuff (schools, roads, police, courts etc)
  • Gavin R. Putland | 07 Apr 2017, 03:06 PM Agree 0
    If stamp duty were REPLACED by a state capital-gains tax (CGT) on property, it would automatically improve the competitive position of first-time buyers, who by definition don't have any capital gains to cash in.

    But even ESTABLISHED owners would be better off under a CGT, because: (i) a CGT, unlike a stamp duty on the purchase price, will not turn a profitable purchase-resale cycle into a loss-maker or increase a loss; (ii) the fact that stamp duty is nominally payable by the buyer, and CGT by the seller, does not affect the final incidence of either, due to the higgling of the market; (iii) a CGT causes less discouragement to turnover (less “lock-in” effect) because an owner who “trades up” more frequently does not pay proportionally more tax, but pays tax in a larger number of smaller instalments; and, most importantly, (iv) a CGT incentivizes the government to invest in infrastructure that raises property values, and is not payable unless the owner actually receives and realizes a rise in value.

    Of course, these advantages are more robust if the CGT is levied on real (inflation-adjusted) gains.
  • Dean Collins | 17 May 2017, 03:45 AM Agree 0
    Stamp duty is great as it keeps property prices down and discourages people from repeatedly flipping.

    Just think of it this long as people are paying stamp duty.....its money not being taken out of your own personal pocket in income tax etc.
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