In Victoria,stamp duty is determined by the sale price of a home or the property’s market value,whichever is greater. There are exemptions for first home buyers and people buying off the plan. A home with a dutiable value of $745,000 will incur about $40,000 in stamp duty.
Victoria’s inquiry will look into the impact of stamp duty on housing supply,labour mobility and the overall efficiency of the tax system.
Given the size of Victoria’s debt – tipped to reach $162 billion by 2025 – the Legislative Council’s economy and infrastructure committee will also examine any changes to revenue forecasting if stamp duty were to be ditched. For much of the past decade,stamp duty has brought in more than $5 billion in revenue for the Victorian government each financial year.
Limbrick’s view of stamp duty is backed bymost economists,who say that large one-off taxes are prohibitive for home buyers.
AMP Capital chief economist Shane Oliver said stamp duty could discourage older Australians from downsizing and deter workers from moving to better-paying jobs.