Calls for the abolition of stamp duty resurface after New South Wales treasurer Dominic Perrottet pressured the federal government to act on tax reforms .
Perrottet called on the federal government to abolish stamp duty and to opt for a "more efficient" property tax.
"It is very difficult to embark on a reform if we have a new Prime Minister every two years in this country. We need political stability to deliver better reform for today and for the future. 39; future, "said Perrottet in a TV interview for Sky. New.
The Alliance of Australian Taxpayers welcomed Perrottet's calls for the abolition of stamp duty.
"Australians have become disillusioned with the housing market due to lack of affordability and high transaction costs. With the exception of Hong Kong, Sydneysiders cop the homes least affordable in the world, "said Julia Kokic, a research associate at ATA.
Read also: WA to remove stamp duty discounts?
Kokic stated that stamp duty restricts the supply of housing available to Australian families.
"People have spoken. Stamp duty is an undue burden on the lives of Australian workers," said Kokic.
However, Prime Minister Scott Morrison said that the decision to abolish stamp duties was only an attempt to increase the consumption tax.
"When states want to disguise reform by asking the Commonwealth government to raise the goods and services tax, I fear my answer is" no ". If states want to raise the GST, it’s 39 is their business, but we "I have no interest in raising the GST," he said in a press briefing.
Submissions to the Federal Financial Relations Review of the New South Wales government have shown that Australians support stamp law reforms.
"About half of all submissions raised the issue of stamp or transfer duties, with the majority requesting that the tax be replaced with something more fair, efficient and predictable that would give people more flexibility to move when it suits them. " says the report.
Read also: Study of the impact of "absurdly high" stamp duties
A communication from the Sydney Committee stated that stamp duty constituted a major "financial brake" for retirees wishing to reduce their workforce.
"Stamp duty also deters people from moving to get closer to their place of work, which not only worsens congestion, but directly undermines the Greater Sydney Commission's goal of delivering a city than 30 minutes, "according to the Committee for Sydney said.
The Property Council of Australia also had similar ideas, adding that stamp duty worsens the affordability of housing.
"It is a tax which is a relic of our colonial past, representing a stamp of state authority on real estate transactions which has absolutely no economic relevance in our modern Australia, "he said.
In a separate statement, the National Development Institute of Australia (UDIA) declared that stamp duty was one of the most ineffective taxes in the economy.
Connie Kirk, National Executive Director of UDIA, said state governments have become too dependent on stamp duty to maintain their budgets despite its volatility.
"We appreciate that any substantial tax reform is a long-term exercise, but it is time for governments to start planning the transition from stamp duties to more general measures such as the property tax. An overhaul of property taxes is way behind given the excessive demand from industry and home buyers, "said Kirk.
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