Interesting article in today’s Age about stamp duty. It looks like some very influential people are advocating for it to be severely scaled down or abolished.This is an argument that is long overdue in my opinion, but it will be politically difficult as the revenue reductions for state government will need to be made up somewhere, and that somewhere will probably be either an increase in the GST duty, or increases in income tax.
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.