Real Estate Institute of Western Australia President Damian Collins has urged the Western Australian Government to scrap stamp duty in the wake of Productivity Commission Chairman Michael Brennan's recommendation for state governments to abolish the tax.
The role of stamp duty has come under fresh scrutiny in Western Australia following Productivity Commission Chairman Michael Brennan’s recommendation for state governments to abolish the tax.
In an interview with Nine, Mr Brennan backed the replacement of state government imposed stamp duties on property transactions with a broad-based land tax, calling it a “worthwhile reform".
Real Estate Institute of Western Australia President Damian Collins welcomed the Commissioner's stance, describing stamp duty as one of the biggest imposts to home ownership.
"Despite WA currently being the most affordable state in the nation, many still find themselves priced out of the market or unable to move homes due to the heavy tax burden," he said.
"It is imperative that the single greatest barrier to housing affordability is removed.
“REIWA has been a vocal advocate for the abolishment of stamp duty and supports long term tax reform that aims to eliminate this tax and move to a broad-based land tax regime."
Stamp duty's reliance on high prices and property turnover has been laid bare within the state as transactional activity has declined.
The number of annual property sales has fallen from over 71,000 in 2013 to less than 40,000 in 2018 – the lowest level of transactions since 1990.
The introduction of a broad-based land tax would mean that homeowners would be charged an annual levy, instead of a lump sum transaction tax.
Mr Collins said were a number of flow-on benefits from the regime.
"It would allow for greater housing mobility across the community," he said.
"Households could locate closer to employment and activity centres, thus reducing congestion.
"Housing mobility is presently stymied by the current stamp duty regime."
REIWA's support of Mr Brennan's recommendation comes less than a week after Real Estate Institute of New South Wales CEO Tim McKibbin described the impending changes to the tax within his state as a "smoke and mirrors exercise".
Similar to this:
Renewed calls for stamp duty reform in the wake of REINSW figures
REINSW CEO: the effects of stamp duty are horrendous
HIA stamp duty report fuels calls for national review of property taxes