Broker News

Burden of stamp duty grows: HIA

Australian families are being slugged more than $1200 each year due to stamp duty charges according to the Housing Industry Association (HIA).

The organisation’s latest Stamp Duty Watch report reveals the typical stamp duty bill (based on dwelling prices during November 2016) increased by 7.4% on a year earlier to $19,975.

Victoria has the highest stamp duty bill at $28,538, followed by New South Wales ($24,965), the Northern Territory ($20,805), the ACT ($17,960), South Australia ($15,830) and Western Australia ($15,390).

Queensland and Tasmania have the lowest stamp duty bills ($6,825 and $9,135 respectively).

HIA chief economist, Shane Garrett, says strong dwelling price growth has translated into disproportionately larger rises in stamp duty costs.

“Stamp duty is now setting ordinary homebuyers back by an average of $19,975,” says Garrett.

“This eats up home purchase deposits and forces families to take on much larger mortgages, with total loan repayments typically rising by around $36,000 over a 30-year term. The cost is even greater when the impact of the higher Lenders’ Mortgage Insurance premiums is added on top.”

According to Garrett the removal of stamp duty should be at the centre of a national housing affordability strategy.

“The large states’ coffers have benefitted heavily from the stamp duty windfall in recent years. Perhaps now is the time to offer some relief,” he concludes.

Published on: Friday, December 09, 2016

blog comments powered by Disqus
  THE SWITZER FEED

OFFICIAL PARTNER