The text explains how stamp duty has become a significant burden for home buyers in Australia and proposes land tax as a better alternative. Here are the key points:

Problems with Stamp Duty:

• Increased Cost:

  • Property prices have grown faster than incomes, making stamp duty a bigger chunk of a buyer’s savings.
  • Tax brackets haven’t been adjusted for inflation, leading to higher effective tax rates.

• Negative Economic Impact:

  • Discourages frequent property purchases and relocations, hindering economic dynamism.
  • A study suggests higher stamp duty leads to fewer home purchases.
  • Reduced mobility of people can slow down job switching and potentially affect productivity growth.

Proposed Solution: Land Tax

The report suggests replacing stamp duty with a land tax because it would be:

• More Stable: Revenue wouldn’t fluctuate with property purchase volume.
• More Efficient:
  • Wouldn’t penalize people for moving.
  • Encourage better land use optimization.
  • Difficult to avoid due to the immobile nature of land.
  • Capture economic benefits from land zoning decisions.

Call to Action:

If you’re considering buying property, the author offers to help you calculate stamp duty and manage your home loan application.