State & territory stamp duty receipts tank

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By Leith van Onselen

The Australian Bureau of Statistics (ABS) yesterday released taxation statistics for the 2011-12 calendar year, which provided a key insight into why state budgets are coming under increasing pressure.

According to the ABS, stamp duty receipts on housing transfers declined by -6% nationally in 2011-12 to $11,657 million, with receipts -18% below the peak level of $14,289 million recorded in 2007-08 (see next chart).

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Below is a summary of stamp duty receipts at the individual state and territory levels.

New South Wales:

Stamp duty receipts fell by -7% in 2011-12 and were -10% below their 2006-07 peak:

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Victoria:

Stamp duty receipts fell by -14% in 2011-12 and were also -14% below their 2010-11 peak:

ScreenHunter_17 Apr. 30 20.18

Queensland:

Stamp duty receipts rose by 14% in 2011-12, but were -31% below their 2007-08 peak:

ScreenHunter_18 Apr. 30 20.21

Western Australia:

Stamp duty receipts rose by 9% in 2011-12, but were -40% below their 2007-08 peak:

ScreenHunter_19 Apr. 30 20.29

South Australia:

Stamp duty receipts fell by -13% in 2011-12 and were -25% below their 2007-08 peak:

ScreenHunter_20 Apr. 30 20.31

Tasmania:

Stamp duty receipts fell by -6% in 2011-12 and were -31% below their 2007-08 peak:

ScreenHunter_21 Apr. 30 20.32

ACT:

Stamp duty receipts fell by -12% in 2011-12 and were -31% below their 2009-10 peak:

ScreenHunter_22 Apr. 30 20.34

Northern Territory:

Stamp duty receipts fell by -9% in 2011-12 and were -27% below their 2009-10 peak:

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The outlook for stamp duty receipts in 2012-13 remains fairly soft, but should record some improvement on 2011-12. The total number of home sales across Australia in the second half of 2012 registered a small increase which, when combined with recent price appreciation, suggests stamp duty receipts will increase at the national level when the 2012-13 tax statistics are released by the ABS this time next year (see next chart).

That said, with housing turnover still subdued overall, and prices yet to recover to their previous peak levels, the golden days inexorably rising stamp duty receipts are over for Australia’s state and territory governments, and they will likely remain under significant financial pressure.

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Leith van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

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Comments

  1. surfbeach2536

    The charts show the the states even in “subdued” times still make an impressive revenue from the Payers of Stamp Duty.

  2. Stamp Duty is a vile instrument that reduces the speed of land transactions, trapping citizens in and out of housing.

    The reduction in equity in changing houses means homeowner Alan cannot move to a much better job in Adelaide, cannot downsize when his adult children finally leave, cannot risk a long period of unemployment or sickness or disability before paying off the mortgage in full and would be destroyed by divorce. Alan may avoid all these negative life-events, but statistically, they do happen to many citizens and the consequences are ferocious.

    Dr Gavin Putland has an interesting take on this statistical release at:
    http://blog.lvrg.org.au/2013/04/stamp-duty-revenue-slumped-again-in.html

  3. The Patrician

    The sequence of the SD “peaks” is an interesting study.

    NSW peaks 06/07
    TAS, SA, WA and Qld peak 07/08
    NT and ACT peak 09/10
    Vic peaks 10/11

    Leith, am I right that some states will be releasing updated SD receipts data shortly?

    • Yes Pat, the states will release updated figures in their budgets along with forecasts. But they aren’t final figures, given they are released prior to the end of the financial year. Should be interesting.

      • The Patrician

        Thanks Leith.

        The NT and WA “falls from peak” (-27% and -40%)are counterintuitive. Given the strength of their property markets I would have thought their SD reciepts would have been on the up and up.

          • The Patrician

            You would think this would be a massive incentive for the NT and WA govts to free up land supply.