by Ericka Pingol
Former chairman of the Productivity Commission, Peter Harris, urged the government to remove stamp duties to get a better substitute.
Harris stated that it would be much better for the government to adopt the main recommendations of the "Shifting The Dial" report, published in 2017 by the Productivity Commission.
According to the report, "stamp duties would add more than $ 50,000 to the cost (cost) of a median-priced house in Sydney, penalizing people and businesses who relocate and discouraging those who wish. For every dollar collected in stamp duty, the reduced investment and mobility cost for Australians is 70 cents. "
Harris, who served between 2012 and 2018, said property taxes would be a better solution. He said that such a change would increase productivity and promote economic growth.
"These reforms, in particular, would gradually replace stamp duty with a property tax. It is a much more stable form of income, with a much larger base than just home sales. It would take a transition of 10 to 20 years, but the federal government could guarantee its income by actually borrowing on its behalf because it was moving from the stamp duty to a property tax, which would ensure the stability of their revenues. Rating agencies would perfectly understand the transfer and would not treat it as an unproductive debt, "Harris told The Australian.
Top suburbs:
Werribee
,
Kawana
,
Scarborough
,
coolbellup
,
Narara
Get help for your real estate investment
Do you need help in finding the right loan for your investment?
When you invest in real estate, it is important to make sure that you do not only have the lowest available rate that you can get, but you also have the features of ready adapted to your needs.
Just fill in a few details below and then we will arrange for a local Australian mortgage broker to contact you and sort out the problem What features or what types of loans are suited to your needs? We will even help with the paperwork. In addition, an appointment is free.
We value your privacy and treat all your information seriously – you can check
our privacy policy here
