Housing Industry Association (HIA) has launched a new publication, which
will function as a regular barometer of the stamp duty burden faced by
homebuyers across Australia.
The first edition of HIA’s new Stamp Duty Watch publication will cover each
of Australia’s eight states and territories.
HIA Senior Economist, Shane Garrett observes that the Winter 2014
edition of Stamp Duty Watch confirms the impact of the stamp duty burden on the
long-term financial well-being of ordinary homebuyers around Australia.
He explains that the typical homebuyer in Victoria is hit with a $24,100
stamp duty bill, the highest in the country, while states such as New South
Wales and Western Australia impose almost $20,000. According to Shane Garrett, stamp
duty will set buyers back at least $15,000 on the median-priced home in all but
two of the eight jurisdictions.
Shane Garrett comments that the burden of stamp duty is significant in
all states and territories. For instance, with the exception of Queensland, the
tax adds at least 3.0 per cent to the cost of the dwelling, and some 5.0 per
cent to the dwelling price in Victoria. He noted that the stamp duty burden makes
the household debt worse by increasing required borrowings.
Shane Garrett suggests that the stamp duty should be placed in the buyers’
superannuation funds; investing the stamp duty bill in superannuation at the
outset would transform the financial well-being of today’s homebuyers on
retirement. It would also take much of the retirement burden off the public
purse over the longer term.
If implemented, this would result in retirees receiving $234,000 in WA, $256,600
in NSW or up to $320,000 in Victoria.
Shane Garrett concludes that stamp duty is an area ripe for policy
reform.
