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The Real Estate Institute of Victoria (REIV) has taken its campaign national to have archaic assessments of stamp duty reassessed and changed to better suit market conditions.
For the REIV, stamp duty bracket creep is an increasing issue for property buyers and professionals alike.
The association is calling on the Victorian government to review the rates and thresholds associated with stamp duty tax.
“In 2008–09, just 6.6 per cent of Melbourne houses had a median house price of more than $960,000; today that figure is 28.4 per cent, but the stamp duty brackets have not changed to reflect this,” the REIV said.
“The median house price in 2008–09 was $428,000, and now in 2018–19, it is almost double that at $810,000. As such, the top level of land tax is being paid on a lot more properties by a lot more people.
“A decade ago, a million dollars was what you would expect to pay for the premium, top end of the property market — Toorak and Brighton mansions — but today, million-dollar price tags are becoming the norm throughout Melbourne suburb.”
The REIV noted that stamp duty tax accounts for almost 50 per cent of state revenue, which the association labelled an “extraordinary” proportion for a single industry to absorb.
“The REIV continues to advocate for the government to reduce its reliance on property taxes such as stamp duty,” the association said.
“Victoria must have a competitive property tax regime to encourage investment and jobs. A more efficient tax system will have positive flow-on effects for our economy; it will make housing more affordable, ensure Victoria attracts foreign investment, unlock productivity, create jobs and provide a fairer revenue base for government.”
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