Stamp duty isn't going anywhere until we can agree on the tax to replace it
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Nearly all economists and most politicians seem to agree stamp duty is a bad tax. But nearly all state and territory governments rely on it to keep the lights on.
It’s a bad tax because it taxes homeowners every time they move, merely because they have moved. At A$40,000 per move on a median-priced home in Sydney or Melbourne, it’s enough to dissuade people from moving for a better job or to a bigger or smaller home when they have children or their children move out.
It’s even a de facto tax on divorce. When a family home is sold to allow assets to be split, each member of the separating couple needs to pay stamp duty to purchase again. It’s a big reason more than half of divorced women who lose their homes don’t buy again within a decade.
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