Modelling by PwC suggests that allowing home buyers to pay land tax rather than stamp duty could generate significant savings. PwC estimates that home buyers in NSW could save around $10,000 over the life of a 45-year mortgage by electing to pay land tax rather than stamp duty. PwC has proposed offsetting the impact of the loss of stamp duty revenue by securitising land tax revenue via the bond market. From The AFR:
An economy-wide benefit would come from the gradual adoption of land tax over stamp duty, which is a major drag on the economy because it discourages downsizing and relocation…
