The Real Reason You Can’t afford to buy: Stamp duty scandal
2015-06-15PRESSURE to address housing affordability is growing and the Abbott government’s lack of action is a major contributor to voter support drifting away.
The Australian Property Council has called the tax increase “scandalous”.
Chief Executive of the Property Council Ken Morrison believes stamp duty is hurting and has become a runaway cash grab.
He said getting rid of Australia’s worst and most inefficient tax, although it is a state tax, had to be a top priority for national tax reform.
“These astounding increases in the costs of stamp duty are nothing short of scandalous,” Mr Morrison said on Monday.
“Taxes are supposed to lean lightly on the economy, not act as a barrier to economic activity, job creation and prosperity, but that is exactly what stamp duty does.”
The council’s commissioned research shows the cost of stamp duty over the life of an average mortgage is now $61,542 in Sydney, $56,616 in Melbourne, $14,733 in Brisbane, $21,564 in Hobart, $33,654 in Perth, $35,427 in Canberra, $30,393 in Adelaide and $49,701 in Darwin.
The figures were detailed in a submission to the Federal Government’s tax discussion paper and come after a week of political debate over housing affordability given the escalating house prices in Sydney and parts of Melbourne.
A new poll shows Opposition leader Bill Shorten has overtaken Mr Abbott as preferred Prime Minister following a series of blunders, including flippant remarks by both the PM and his Treasurer on the very real struggle of those trying to buy a first home.
The the latest Fairfax-Ipsos poll shows just 29 per cent of capital city residents believe housing is affordable for prospective first homebuyers. In Sydney, the figure is as low as 15 per cent.
The disastrous result for the Coalition shows Treasurer Joe Hockey’s comments last week about buyers simply getting “a good job that pays good money” had hurt.
First-home buyers were given another slap in the face when Tony Abbott talked about his daughter buying a property in Canberra, so he “couldn’t see what the problem” was. This came after he told Parliament he wanted house prices to continue increasing.
Opposition leader Bill Shorten has regained his longstanding edge over Tony Abbott as preferred prime minister, albeit by just one point to 42 per cent.
Mr Abbott also lost ground to the opposition on marriage equality, with 68 per cent of voters now disagreeing with his refusal to legalise same-sex marriage.
He is also likely to be hurt by a wealth of new evidence Australian officials may have paid people smugglers to support his “hook or by crook” turn back the boats policy. It’s not looking like a great day.
Mr Abbott has repeatedly refused to answer questions about the reports despite growing pressure for answers from Indonesia, the United Nations, Labor and the Greens.
Rather than addressing the allegations, Foreign Minister Julie Bishop today attacked Indonesia for failing to secure its own borders.
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