VIC abolishes stamp duty for off the plan apartments - could QLD be next?
Following news of Victoria abolishing stamp duty for 12 months, Federal Housing Minister Clare O’Neil has suggested the time is right to phase out stamp duty all together.
Speaking to ABC RN, Minister O’Neil expressed the Albanese Government’s support for greenfield development and infill of higher-density suburbs, as well as backing calls for stamp duty - a “bad tax”, to be phased out.
Real Estate Institute of Queensland (REIQ) CEO, Antonia Mercorella, said this publicly stated position opened the door for the State Government to work with the Federal Government to phase out Queensland’s outdated stamp duty regime to encourage a higher rate of home ownership.
“Stamp duty presents a considerable barrier to those wanting to buy their first home, and to retirees seeking to downsize their family home,” Mercorella said.
“It also hinders job mobility which affects the productivity of the entire economy, as well as impacting significant life decisions such as starting a family and moving homes."
Mercorella says phasing out stamp duty has the potential to drive a significant trend in ‘rightsizing’ to appropriately sized and located homes, substantially increasing the supply of housing into the market.
“Now is the time for the State Government to start that conversation and begin to negotiate a better GST outcome and incentive fund with the Federal Government in return for stamp duty reform.
“It is a long-standing policy direction of the REIQ to see a phased transition to a land tax-based model starting with first home buyers, as well as abolishment of stamp duty for downsizers aged over 55 moving to a home with fewer bedrooms.
“We appreciate that stamp duty is worth nearly $30bn over the forwards on the Queensland State Budget and that’s why a phased-out approach is best to avoid placing additional pressure on the state’s finances.”
The Allan Government in Victoria has just announced it is removing stamp duty in full for off the plan buyers for 12 months.
