Real Tax Policy
One of the most inefficient existing taxes in Australia is stamp duty on real property transfers.
Instead of abolishing stamp duty, States and Territories have increased reliance on it and exacerbated its problems. Land tax also fails criteria for good taxation.
Transfer duty and land tax are disincentives for investment in real estate as compared to other assets such as quoted securities which do not attract these taxes in Australia. Apart from the distortionary effects on market forces, it is unjust that State and Territory taxes discriminate between different investment opportunities. The Commonwealth, States and Territories need to eliminate inefficient and inequitable taxes impeding economic activity.
There must be a plan for stamp duty on real property transfers and land tax to eventually be abolished or significantly reduced. A Forum should be established to dialogue this objective. REINSW should be part of it.
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