For every $1 of stamp duty collected, 55 cents goes down the drain in lost economic activity. Yet the state government is refusing to switch.
Victorians are forking out more on stamp duty than any other state in the nation, but new modelling shows how the tax is now costing the state almost $5 billion a year in lost economic activity.as part of a push to make housing more affordable, with the budget now about 50 per cent more reliant on the revenue the tax raises than it was 20 years ago.
Coates said the average stamp duty payable on the median-priced home in Victoria had nearly tripled in the past 15 years.“The economic case for a swap from stamp duty to land tax swap is watertight: having to pay stamp duty on the purchase of a property deters families from moving to the house or location that better suits their needs,” Coates said.The proportion of Melbourne home buyers paying the top rate of stamp duty has increased from 6 per cent to 33 per cent since 2008, according to.
According to Treasury’s predictions, this financial year stamp duty will account for about 21 per cent of total taxes. A spokeswoman for the government said: “The Allan Labor government’s support is also helping thousands of first home buyers across the state secure their home with stamp duty exemptions and discounts, and First Home Owner Grants.”
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