REIWA backs Productivity Commission Chairman's call to abolish stamp duty

REIWA backs Productivity Commission Chairman's call to abolish stamp duty 01/08/2019

The role of stamp duty has come under fresh scrutiny in Western Australia following Productivity Commission Chairman Michael Brennan’s recommendation for state governments to abolish the tax. In an interview with Nine, Mr Brennan backed the replacement of state government imposed stamp duties on property transactions with a broad-based land tax, calling it a “worthwhile reform". Real Estate Institute of Western Australia President Damian Collins welcomed the Commissioner's stance, describing stamp duty as one of the biggest imposts to home ownership.
"Despite WA currently being the most affordable state in the nation, many still find themselves priced out of the market or unable to move homes due to the heavy tax burden," he said.
"It is imperative that the single greatest barrier to housing affordability is removed.”
“REIWA has been a vocal advocate for the abolishment of stamp duty and supports long term tax reform that aims to eliminate this tax and move to a broad-based land tax regime."
The introduction of a broad-based land tax would mean that homeowners would be charged an  annual levy, instead of a lump sum transaction tax. Mr Collins said were a number of flow-on benefits from the regime. "It would allow for greater housing mobility across the community."
REIWA's support of Mr Brennan's recommendation comes less than a week after Real Estate Institute of New South Wales CEO Tim McKibbin described the impending changes to the tax within his state as a "smoke and mirrors exercise".
 
So what would a further interest rate cut mean for Perth’s property prices…
We are 100% confident that the abolishment of Stamp Duty would see an immediate surge in Buyer activity.
 
Source: The realestateconversation & Sam Saffioti