The Chamber of Commerce and Industry WA (CCIWA) ‘Stamping out stamp duty’ – is a nationally significant report making a powerful case to reform one of the most economically damaging taxes.
Underpinned by modelling conducted by the Australian National University’s Centre for Social Research and Methods, the report clarifies a highly practical option for economic reform.
CCIWA’s ‘Stamping out stamp duty’ report builds upon widespread expert support, by the Henry Tax Review, ACOSS, St Vincent de Paul, UDIA, the OECD, the IMF and the Productivity Commission.
The report makes the case for the abolition of stamp duty on property transfers, and the introduction of a fairer, broad-based replacement tax on the property’s Gross Rental Value.
It argues that stamp duty is an inequitable and regressive tax that creates a significant financial barrier to lower income households to achieve home ownership.
Proposed benefits of replacing stamp duty tax include:
- Greater housing flexibility, enabling people to downsize/upsize or relocate as their needs change.
- Reducing the upfront costs of buying a home and the costs of relocating.
- Improving work mobility, including into regional WA.
- Creating a more stable state revenue base.
Shelter WA supports reform to stamp duty and a transition to a broad-based tax, provided there is significant consultation with the sector and the community and that there is a clear plan for equitable and incremental implementation. This is in line with National Shelter’s position, and was outlined as a key policy reform opportunity in The Tax Institute’s 2021 Case for Change Report.
Shelter WA continues to work on behalf of our members to advocate for a fairer housing tax system in WA.
The CCIWA report can be found here.