There are renewed calls to reform stamp duty across Australia following a report that reveals the controversial tax paid by homebuyers has almost doubled in just four years.
The Housing Industry Association’s (HIA) latest report Stamp Duty Watch shows that the total amount of stamp duty paid in Australia during the 2015/16 financial year was $20.6 billion – up from $11.7 billion in 2011/12.
“Stamp duty bills have increased almost three times faster than house prices since the 1980s and this trend will continue unless stamp duty is reformed,” says HIA Senior Economist, Shane Garrett.
The average stamp duty tax bill
The report from Australia’s peak residential building association also showed that the typical stamp duty bill faced by owner occupiers across Australia is now $20,587.
Fortunately for Queenslanders, our typical stamp duty bill is the lowest in the nation at $7,175. Much lower than Victoria ($31,970) and New South Wales ($25,190).
“By draining the pockets of homebuyers to the tune of over $20 billion each year, stamp duty is a central pillar of the affordability crisis,” Garrett says.
“To do away with the scourge of stamp duty would be a huge victory for housing affordability in this country.”
State government dependence
The report adds that dependence of the states on stamp duty revenue has worsened significantly.
During 2015/16, stamp duty accounted for 26.1% of tax revenues – up from 19.4% in 2011/12.
“State governments are increasingly reliant on rising stamp duty revenues. This situation is not sustainable,” says Garrett.
How we can help you
The New South Wales government recently made moves to abolish stamp duty on all dwellings purchased up to $650,000 to help first home buyers.
But, in all honesty, the total abolishment of stamp duty across the nation for all homebuyers is likely to be a while off yet.
In the meantime, we can help you structure your mortgage in the best possible way to make sure you don’t have to settle for a smaller home – or take on too big a mortgage.
Give us a call today to find out how.
Typical stamp duty bills, December 2017
New South Wales $25,190
South Australia $16,705
Western Australia $15,485
Northern Territory $20,805
Australian Capital Territory $18,058
Australia (Weighted Average) $20,587
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