ACOSS: Ditch stamp duty for land tax

ACOSS is urging the Turnbull government and states to switch from stamp duties to a land tax as part of a national tax reform package.

ACOSS CEO Cassandra Goldie said such a switch would stabilise the tax base for the states and improve housing affordability.

Scrapping stamp duties would remove barriers to entering the housing market and encourage greater investment in new housing stock.

Goldie said if the goal of tax reform is economic growth, then this is the best reform option and should be implemented before consideration of further tax cuts to individuals or companies.

She said stamp duties provide an unstable, inconsistent and largely unpredictable source of revenue as they are tied to volatile housing markets.

As stamp duties are paid up front, it inhibits the ability of new home buyers to enter the market while discouraging older people from downsizing in retirement.

“We understand that this will be a politically difficult reform, but it is a fundamental one that will require leadership,” Goldie said.

It will include the Commonwealth having to stump up some money to help with transition arrangements and compensation for low-income earners, farmers and retirees.

“If the prime minister is serious about a growth-friendly budget he needs to allocate some funds to support the states and territories to steer the path towards a broad-based land tax in the interests of economic growth,” Goldie said.

AAP

+ posts

• AAP

  https://www.thirdsector.com.au/author/aapthirdsectoroctomedia-com-au/

  Ex-NSW RSL boss fraud case in Sydney court
• AAP

  https://www.thirdsector.com.au/author/aapthirdsectoroctomedia-com-au/

  Domestic violence prevention gets $328 million
• AAP

  https://www.thirdsector.com.au/author/aapthirdsectoroctomedia-com-au/

  Community to share in $50 million of taxpayer grants to cut overheads
• AAP

  https://www.thirdsector.com.au/author/aapthirdsectoroctomedia-com-au/

  NFP aged care worker guilty of assault