Economists have long advocated replacing stamp duty with land tax. We find that the implications for housing prices depends on whether you own a house or an apartment.
Epic Records/JULIAN SMITH/AAP
Charging for rezoning is a move other states should follow, as are land taxes. Stamp duty hikes, not so much.
House sales have brisk this year following the stamp duty holiday.
Maureen McLean/Alamy Live News
A stamp duty holiday announced to avoid a housing market crash is not all it was cracked up to be.
Homebuyers would benefit from a stamp duty for land tax swap, and so would some homeowners.
Its “opt-in” proposal means some homeowners will never switch over and will never pay land tax.
Tasmania gets more of its revenue from “bad taxes” than any state or territory other than Victoria, and less from “good taxes” than anywhere other than Queensland.
Rezoning enormously increases the value of properties. Yet the developers who benefit don’t want to pay, in the name of “certainty”.
It would be a mistake to think that just because higher earners face higher tax rates, that’s what they pay. When it comes to income from savings it’s the other way around.
‘Pssst, wanna buy a house?’
At a time when so many are struggling, cutting stamp duty and helping the well off might seem like a strange move.
Boosting the GST and swapping land tax for stamp duty get headlines, but they never seem to happen.
It’s time to reform stamp duty, one of the most inefficient and distorting taxes collected by Australia’s state and territory governments.
Millions of Australians are struggling with unaffordable housing. It’s a systemic problem that’s been decades in the making, and only concerted system-wide reforms will fix it.
Eliminating stamp duty would bring on more real estate transactions, but that might not be a good thing.
The conventional case for swapping stamp duty for land tax will boost the economy has weak underpinnings.
The ACT has Australia’s best state tax system, NSW the worst.
The Grattan Institute says swapping stamp duty for land tax would make Australians up to $17 billion a year better off.
Gradually reducing stamp duty and negative gearing would minimise the impact on investors.
Housing affordability has declined significantly over the past few decades. Slowly reducing negative gearing and capital gains, and switching to property taxes, could reverse this trend.
Older Australians are not deterred by financial barriers as much as emotional ones, when it comes to downsizing.
When people do downsize, financial incentives are generally not the big things on their minds. And so most of the budget’s financial incentives will go to those who were going to downsize anyway.
The Turnbull government’s line that supply is the key to affordability finds little support among housing experts.
Housing experts writing for The Conversation largely agree on the government policies that are causing negative distortions in the market and the wider economy. And supply is not the key concern.
This transit-oriented development in Oakland, California, combines residential housing with easy access to local transport options and amenities.
A combination of transit-oriented centres, inclusionary zoning and a special rate on land instead of stamp duty could make housing more affordable by cutting congestion, development and travel costs.
NSW treasurer Gladys Berejiklian has handed down a $3.7 billion surplus.
NSW’s no-debt budget comes with a declining share of GST, an issue that must be wrangled with the federal government.
Almost one in three older Australians would like to downsize to reduce the demands of maintaining their garden, but many can’t find alternative homes to suit their needs.
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Australia’s housing stock is not meeting the demands of older Australians, according to a new report.