State governments have an unhealthy dependence on stamp duty: Mark Mendel

GUEST OBSERVER

Most Australians believe the best way governments can assist the property market is to stop overburdening homebuyers with the crippling costs of stamp duty.

A poll iBuyNew which asked ‘What would be the best way for government to assist the property market?’ found 55 percent of respondents wanted to cut stamp duty.

Thirty percent of participants in the online survey suggested increasing first home buyer grants would be most effective, while 15 percent called for negative gearing to be scrapped.

Most governments remain over-reliant on stamp duty. 

State governments still have an unhealthy dependence on stamp duty which is just a drag on the economy and a handbrake on homebuyers.

If governments are not prepared to abolish stamp duty they should at least consider reductions or more concessions for certain buyers.

Greedy state governments had also been behaving badly by slugging foreign investors with excessive new surcharges and tax increases.

Foreigners buying property in Australia should be paying some tax but the measures that were recently announced by the NSW, Victorian and Queensland governments were over the top.

iBuyNew survey results:

What would be the best way for government to assist the property market?

Cut Stamp Duty                                             55 percent

Increase first home owner grants                     30 percent

Abolish negative gearing                                 15 percent

Mark Mendel is chief executive officer, iBuyNew and can be contacted here.