Stamp Duty Hindering Market
Monday, 1 December 2008
A new survey by BankWest has revealed that Sydney home buyers face the nation’s highest stamp duty bills. The median amount paid in Sydney is $19,385, while Brisbane is the lowest among our capital cities at $5688. The big stamp duty bills provide a major disincentive for Sydney buyers, which has resulted in lower sales, a flatter market and less choice.
When the GST was introduced, the states agreed that they would work to eliminate stamp duties. However with New South Wales and other state governments extremely cash strapped, they are unlikely to give up on the billions of dollars in stamp duty revenue any time soon.
While concessions are available for first home buyers, family buyers who need to upgrade are being unfairly targeted by the tax and have meant more are renovating their homes instead of moving. Stamp duty has also provided a major disincentive for empty nesters to vacate their family homes.
