In recent weeks REINSW has taken a firm stance about abolishing the current state-based tax system and has called for other property institutes and associations to voice their support for tax reform.
"We must move away from the narrow based discriminatory taxes, including stamp duty, which inhibit growth,” REINSW President Malcolm Gunning said.
“Instead we need a modern broad based tax system that will provide government with its revenue and not impede or deter investment. The current state tax system is adversely affecting the growth of the state’s economy.
“The time to act is now. We must look for a modern tax system that will provide growth and employment.
“Abolishing these inefficient and inequitable taxes will also mean industry and commerce’s compliance costs and the public servants administering the supporting bureaucracy in this area vanish. These savings alone should be inspiration enough to justify the enquiry.”
The newly appointed Property Council CEO Ken Morrison agrees, saying that if the government is serious about fundamental tax reform, stamp duty needs to go.
"We don’t have a timeframe yet, but the Federal Government has indicated it’s going to undertake a full review of Australia’s tax system. This is a big opportunity for the industry to address what we know as one of Australia’s worst taxes - stamp duty,” Mr Morrison said.
“We need to retire our worst taxes, like stamp duty, and replace them with more efficient taxes. There’s no doubt that stamp duty is a growth inhibiting tax for the property industry.”
Both REINSW and the Property Council will assist the government in finding an alternative revenue replacement.