Property Council’s Plans to Eliminate Stamp Duty Soon
Australia’s Property Council is planning to completely put an end to “Stamp Duty”, but warns against using the Australian Capital Territory’s reform model, which has led to a sharp hike in commercial property rates.
The council is now thinking upon to build upon such a model that will deliver a honeymoon period for people who’ve bought properties in the past few years and paid out large lump sums in stamp duty under the system now.
“Stamp duty is a drag on an economy in transition like South Australia, which needs a much more mobile labour force and as much flexibility and productivity as possible”, says Daniel Gannon, the executive director of the South Australian division of the Property Council.
But he says, “We want to ensure a honeymoon transition takes place carefully and effectively to remove any chance of a double whammy impact“.
He further says that this elimination of stamp duty must be handled carefully so as to ensure stability and minimise distortions.
The Property Council in South Australia has held meetings with Treasurer Tom Koutsantonis on the government’s review of state-based taxes, and the abolishing of stamp duty is one of the centrepieces of the organisation’s submission into the review.
News Source: http://www.afr.com/real-estate/property-councils-plan-to-phase-out-stamp-duty-20150421-1moo5m