Peak body calls on federal, state governments to scrap stamp duty
The Real Estate Institute of Victoria is calling on state and federal governments to use an upcoming treasurer’s forum to eliminate stamp duty, which the real estate body says hinders market participation for millions of Victorians.
Recent reports suggest that property tax policy will be a key agenda item at the July 22 state and federal treasurers forum, which is expected to prioritise housing affordability, REIV said.
REIV CEO Quentin Kilian said that it was gratifying to see property sector tax reform on the radar of political leaders.
“We welcome a national discussion on a fundamental overhaul of real estate industry taxation – it is, quite frankly, overdue,” he said. “For too long here in Victoria, our government has been reliant on stamp duty, a tax which is hugely prohibitive for first-home buyers looking to get into the market, not to mention new investors and even downsizers. Each year, the Victorian government derives up to $14 billion in revenue from the property sector – nearly half of all taxation revenue raised – but not much has changed in terms of new support of the sector, either by investing in more social housing or contributing to other initiatives that help develop a stable and sustainable property market. This has to change.”
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REIV will meet with other property sector bodies ahead of the forum to discuss a new way forward, the organisation said.
“With this rate opportunity to shape public policy, it’s important the sector comes together to confirm what an alternative tax regime might look like, as well as work together to serve the interests of Victorian homeowners and aspirants,” Kilian said. “REIV will be representing the interests of more than 2,000 real estate businesses and another 7,000 individual members who have long been calling for change.”