The Housing Industry Association (HIA) has issued a media release calling for governments to replace stamp duties with a “more stable, efficient and equitable tax”.
HIA Chief Economist, Tim Reardon, argues that stamp duty is “universally recognised as one of the most inefficient and inequitable taxes that does not provide a stable revenue stream” and believes that “the case in favour of reforming stamp duty is so strong” that it doesn’t matter whether governments choose a phase-out method or ‘opt in/out’ arrangement, just “as long as stamp duty is abolished”.
Specific benefits noted by Reardon from replacing stamp duty with another efficient tax include:
- Mobility: “A workforce able to relocate in the pursuit of education and employment opportunities, without incurring punitive taxes”.
- More efficient allocation of resources: Allowing households to move where they want to live means more efficient allocation of public investment in transport infrastructure, land and health care resources. “A switch away from stamp duty also offers a better use of land as it penalises low value use of land in areas with high land values”.
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