Victorian Budget faces stamp duty bust

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By Leith van Onselen

When the Victorian Budget was released in late April, the Treasury projected that stamp duty receipts would continue growing over the forward estimates following a tiny correction next financial year (see next chart).

ScreenHunter_12736 Apr. 29 09.51

When questioned about these assumptions, Victorian Treasurer, Tim Pallas, insisted the Budget was sustainable despite its heavy reliance on the booming property market, whereby stamp duties accounted for 30%of all state tax revenues in 2015-16:

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.