Call to stamp out duty

REMOVAL of “antiquated” stamp duty taxes would improve housing affordability by addressing supply concerns and encouraging more homeowners to consider trading properties, according to a report.

The continued low number of properties being listed on the market has proved one of the key components of the current housing boom, as buyers compete to take advantage of record low rates.

Analysis from the Real Estate Institute of Australia in conjunction with SQM Research suggests the rising cost of housing and flow-on effect to stamp duty might be playing a larger part in the equation than first thought.

According to the “Stamp duty: The relationship to Australian housing affordability” report, the total number of national property listings has been steadily falling over the past year and now sits at just over 200,000 properties – a record low on SQM’s numbers.

In contrast, national listings between 2011 and 2019 – a period that recorded two upturns and one downturn – ranged between 300,000 and 380,000 dwellings.

Stamp duty as a proportion of purchase price has risen a full percentage point over the period to add an additional 4.2 per cent to the purchase cost. In real terms, median stamp duty has risen from $17,688 to $31,152 over the past nine years.