The Victorian State Government is setting its sights on budget repair, and will abolish stamp duty for commercial and industrial properties in a move they say will grow the economy to the tune of $50 billion.
The Federal Government is being pressed to dump stamp duty in favour of letting buyers choose an annual land tax.
Treasurer Tim Pallas says stamp duty will be halved for new homes and cut by 25 per cent for existing homes as of now through to June 2021.
New South Wales has announced plans to phase out stamp duty and it’s getting support from both sides of politics, as well as the Reserve Bank governor.
The impact of rocketing stamp duty is starting to bite into Melbourne’s property market as an increasing number of homeowners opt to renovate rather than move.
The Property Council of Australia has said it would like to see stamp duty abolished to encourage more movement in the labour market.
The Grattan Institute has released a report saying that a new broad-based property levy could raise $7 billion a year and fund the abolition of stamp duty.