Affordable House Company, a well-established Queensland-based home builder, supports the abolition of stamp duty associated with purchasing residential property in Queensland, declaring that it would help more Australians enter the housing market by improving housing affordability.

Stamp duty, one of the most significant expenses associated with purchasing residential property, is an obstacle to homeownership or property investment for many prospective purchasers. Many industry experts declare that State and Federal Governments should prioritise phasing out this inefficient and inequitable tax which would lead to a major tax reform and assist with housing affordability.

Each Australian State and Territory Government charges stamp duty on residential property transactions. Stamp duty and rebates vary between states and are conditional on whether the purchaser is transacting as an owner-occupier or investor. Tax reform debates, involving the abolition of stamp duty, continue to be undertaken in many states.

In Queensland, the State Government charges stamp duty on transfers of residential property. There is a general rate of stamp duty which is payable by the purchaser of an investment property, and a concessional rate for those purchasing as an owner-occupier. First homebuyers get their rate reduced further if the purchase price is beneath a certain threshold. Stamp duty is payable by the purchaser at settlement.

Affordable House Company agrees that, “Stamp duty is an obstacle for many prospective purchasers transacting in residential property, as it is an excessive charge above the purchase price. The extra charge makes it additionally challenging for first homebuyers (young people in particular) to enter the housing market.”

The Housing Industry Association (HIA) is recommending for stamp duty to be replaced by a more efficient and equitable broad-based land tax for all property purchases.

Under the proposal, purchasers would be able to choose between the current system of paying stamp duty or paying a more marginal annual tax for the duration of their property ownership. Some experts state that this may disadvantage many Australians however. Another proposal would be to source the stamp duty revenue from broadening the Goods and Services Tax (GST) base.

The Real Estate Institute of Australia (REIA) states that the recommendation to abolish stamp duty is a move in a positive direction for the residential property market. Many industry experts are actively advocating for this major tax reform.