Invest
Volatility of stamp duty revenue prompts calls for a rethink
Property taxes have again propped up local and state governments for the 2017-18 financial year, but reliance on stamp duty will be a roller-coaster in the years to come, data experts warned.

Volatility of stamp duty revenue prompts calls for a rethink
Property taxes have again propped up local and state governments for the 2017-18 financial year, but reliance on stamp duty will be a roller-coaster in the years to come, data experts warned.

The $30.293 billion in property tax revenue was an annual increase of 5.6 per cent on the previous financial year’s figures. This is despite the Australian Bureau of Statistics’ (ABS) latest figures excluding stamp duties on conveyances as tax on property, by changing the definition to a provision of goods and services.
Stamp duty
Over the last 12 months, stamp duty revenue fell in all states, rising only in Victoria and Tasmania.
However, taking a more long-term view, stamp duty in Sydney and Melbourne have been a cash windfall for the local and state governments.
Stamp duty revenue in NSW is 89.7 per cent higher over the past five years, and in Victoria it is up 116.0 per cent.
Revenue has been less stable in Western Australia, where the housing market has largely been falling over the same period, leading to a -18.9 per cent growth on stamp duty.
CoreLogic research analyst Cameron Kusher, points to the volatility of stamp duty as a source of government revenue.
“When the housing market is seeing increased transactions and rises in values, stamp duty generally rises and vice versa. The national housing market started to see values fall late in 2017 and, as a result, stamp duty revenue is largely unchanged in 2017-18 from the previous year,” Mr Kusher said.
Mr Kusher believes that state governments should move away from the tax altogether.
“With the NSW and Victorian governments seemingly going to be hit by a loss of stamp duty revenue over the coming years, it would seem that now is as good a time as ever to look to move away from this transactional tax,” he said.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author

About the author


Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Dutch e-commerce giant VidaXL ramping up Australian operations
Netherlands-based online retailer VidaXL is ramping up its operations in Australia, by launching the build of a brand new 81,000 sq m national distribution centre in Melbourne. ...Read more

Property
Invest in property or watch savings dwindle, expert warns
Money is cheaper than it’s ever been on the back of a favourable interest rate environment, compelling Aussies to shift away from other types of investment vehicles and into property investment. ...Read more

Property
Is 2021 a great year to buy property? Aussies think so
2021 is tipped to be one of the busiest years for property ever as money remains cheap and readily accessible, with a majority of Aussies agreeing that now is a good time to buy. ...Read more

Property
Young Aussies set their sights on home ownership in 2021
The COVID-19 pandemic has accelerated younger Australians’ desire to own their own home, despite affordability remaining a significant concern, new research has revealed. ...Read more

Property
HomeBuilder stimulus causing surge in new houses: ABS
Housing schemes such as HomeBuilder and historically low-interest rates are causing a surge in new properties being built in Australia, official stats have shown. ...Read more

Property
Cancelled gap years could trigger first home buyer frenzy
COVID-19’s cancellation of travel plans could fuel demand from first home buyers in Western Australia, according to a chief executive. ...Read more

Property
When will Australia crack the $1m median house price?
A property investor has predicted Australia’s median house price will surge to over $1 million in the next three years, as the economic recovery acts as a tailwind for the industry. ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Dutch e-commerce giant VidaXL ramping up Australian operations
Netherlands-based online retailer VidaXL is ramping up its operations in Australia, by launching the build of a brand new 81,000 sq m national distribution centre in Melbourne. ...Read more

Property
Invest in property or watch savings dwindle, expert warns
Money is cheaper than it’s ever been on the back of a favourable interest rate environment, compelling Aussies to shift away from other types of investment vehicles and into property investment. ...Read more

Property
Is 2021 a great year to buy property? Aussies think so
2021 is tipped to be one of the busiest years for property ever as money remains cheap and readily accessible, with a majority of Aussies agreeing that now is a good time to buy. ...Read more

Property
Young Aussies set their sights on home ownership in 2021
The COVID-19 pandemic has accelerated younger Australians’ desire to own their own home, despite affordability remaining a significant concern, new research has revealed. ...Read more

Property
HomeBuilder stimulus causing surge in new houses: ABS
Housing schemes such as HomeBuilder and historically low-interest rates are causing a surge in new properties being built in Australia, official stats have shown. ...Read more

Property
Cancelled gap years could trigger first home buyer frenzy
COVID-19’s cancellation of travel plans could fuel demand from first home buyers in Western Australia, according to a chief executive. ...Read more

Property
When will Australia crack the $1m median house price?
A property investor has predicted Australia’s median house price will surge to over $1 million in the next three years, as the economic recovery acts as a tailwind for the industry. ...Read more