Property Buzz

Money & market

Housing minister backs calls to phase out ‘bad tax’ stamp duty

post-header

Federal Housing Minister Clare O’Neil has thrown her support behind abolishing stamp duty to improve housing affordability and mobility across Australia.

The Real Estate Institute of Queensland (REIQ) welcomed O’Neil’s stance after she labelled stamp duty a “bad tax” that needed phasing out during an ABC RN interview.

REIQ CEO Antonia Mercorella said stamp duty reform could help address multiple housing challenges.

“Stamp duty presents a considerable barrier to those wanting to buy their first home, and to retirees seeking to downsize their family home,” Mercorella said.

The tax currently generates nearly $30 billion in Queensland state revenue over the forward estimates.

Mercorella called for negotiations between state and federal governments on GST arrangements to enable reform.

The REIQ advocates for a gradual transition to a land tax model, starting with first home buyers.

==
==

The industry body also supports removing stamp duty for downsizers over 55 who move to smaller homes.

According to Mercorella, the tax affects more than just housing affordability.

“It also hinders job mobility which affects the productivity of the entire economy, as well as impacting significant life decisions such as starting a family and moving homes,” she said.

The minister’s comments aligned with federal government support for increased housing density and greenfield development.

REIQ believes removing the tax could encourage more appropriate housing choices and boost market supply.

Previous post
Next post
Leave a Reply

Your email address will not be published. Required fields are marked *