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E61 Institute in collaboration with PropTrack has released research showing that stamp duty costs home buyers six times more than a generation ago, making it a considerable barrier to joining the housing market.
In particular, stamp duty on a median-priced Sydney home is equivalent to $44,500, or 6 months’ average full-time post-tax income. That’s 5.4 times more than it cost in the early-to-mid-1980s.
Buyers in Melbourne also need the equivalent of 6 months of full-time earnings to save $42,500, which is a significant 6.1-fold rise from four decades ago and the greatest increase of any city.
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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.