Calls to Axe Stamp Duty

Thursday, 15 October 2020

Sashi Prasad Oct 15, 2020

For a median house price in Marsden Park [NSW 2765] of $799,500 you will need to pay an additional $31,410 in stamp duty.  The issue says Erinna Giblin is that revenue from the duty depends on turnover, and at the same time it acts as a disincentive to change properties.

So it seems many experts, industry figures and even some politicians are calling to axe the unpopular stamp duty tax post COVID-19.

Although removing stamp duty would help people trying to break into the market or move to homes that better suit their circumstances it also presents governments with three main challenges:

  1. Making the new tax fair for people that have paid stamp duty recently

  2. Making the new tax fair for those that are asset-rich but income-poor, such as pensioners

  3. Maintaining revenue during the transition phase.

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