REIA Welcomes Treasury Comments on Stamp Duties
The Real Estate Institute of Australia (REIA) has welcomed the comments made by the secretary of the Treasury, Dr Martin Parkinson, that there needs to be a move to abolish state based real estate stamp duties.
Mr Parkinson identified stamp duties as the biggest drag on productivity and a tax that inhibits economic adjustment.
“The REIA has long advocated reform of state property taxes,” said REIA acting president Pamela Bennet. “State based stamp duties are inequitable, inefficient and an unstable source of revenue for state governments. Stamp duties represent additional costs to property transactions, discouraging turnover of housing and distorting choices between moving house and renovating.”
“Abolition of stamp duties would not only improve mobility but also improve social and economic development. The abolition of all stamp duties and replacement with more efficient taxes will improve household consumption, a measure of economic wellbeing, by around 2%. The REIA will be taking this position to the Tax Forum in October and will be seeking a commitment from the state and Commonwealth governments to take an agreed and co-ordinated approach to an agenda for reform.”