Massive rise in stamp duty
The Property Council has reported that stamp duty has seen a massive rise in the last two decades.
Stamp duty on a median house in Sydney has increased by 749% in the last 20 years, rising from a mere $4,685 in 1995 to $35,090 in 2015. Over the life of an average mortgage, this equates to a true cost of stamp duty of $61,542.
Stamp duty was identified by the Federal Treasury as the tax with the highest "cost to living standards and economic growth". It acts as a major barrier to home ownership and also deters people from upsizing or downsizing to homes more suited to them.
The Property Council maintains that the astounding increase in stamp duty costs is a runaway cash grab that is unfair and having a detrimental impact on the economy and potential homebuyers.
They consider that abolishing stamp duty should be a top priority of national tax reform.