Industry Calls for Abolishment of Stamp Duty

23 Sep 2011 - Staff Reporter from http://www.rebonline.com.au/

Secretary of Treasury Martin Parkinson’s comments around stamp duty have been applauded by other industry pundits.

Speaking at a conference on the 21st September, Mr Parkinson called on the government to abolish state-based real estate stamp duties.

Mr Parkinson said stamp duties were the biggest drag on productivity and a tax which inhibits economic adjustment.

Real Estate Institute of Australia acting president Pamela Bennet welcomed Mr Parkinson’s comments and said the REIA advocates a reform of state property taxes.

“State based stamp duties are inequitable, inefficient and an unstable source of revenue for state governments,” Ms Bennett said.

“Stamp duties represent additional costs to property transactions, discouraging turnover of housing and distorting choices between renting and buying and between moving house and renovating.”

Ms Bennet said abolition of stamp duties would not only improve mobility but also improve social and economic development.

“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 coordinated approach to an agenda for reform.”