Aussies think stamp duty is “most unfair tax”
2015-07-15According to new research, there has been a significant shift in community attitudes toward tax reform in Australia. Stamp duty on property purchases ranks as the least fair and most punitive, with a majority of Australians wanting it abolished and strong support for increasing GST to retire stamp duty. In contrast, GST is considered the fairest of all current taxes.
Almost three quarters (72 per cent) of Aussies believe it’s inevitable that GST will rise over the next decade, while only two per cent believe it definitely won’t.
Most believe the GST is a fair tax because it’s one that can’t be dodged.
Stamp duty, on the other hand, is considered the most unfair tax, with most Australians agreeing that it’s now a major barrier to buying a home.
More than two-thirds (68 per cent) of Australians have been personally affected by stamp duty and it has made it harder for around half (54 per cent) to afford a home.
The research also reveals that housing affordability ranks as a key concern, with 86 per cent of those surveyed claiming they’re concerned about housing affordability to some degree and nearly two thirds (63 per cent) either “extremely concerned” or “very concerned”. Seventy per cent believe it is “extremely” or “very important” for the government to take action on this issue.
Three-quarters of Australians also agree that stamp duty is driving up home prices and making it unaffordable for young people to own their own home. More than two thirds of the community support the idea of abolishing stamp duty.
Reducing the level of tax on people’s homes is considered a higher priority than reducing the rate of personal income tax.
Almost half (47 per cent) of Australians support abolishing stamp duty in exchange for removing current GST exemptions: a further 21 per cent are undecided and only 32 per cent oppose this reform proposal.
A similar proportion (46 per cent) support abolishing stamp duty in exchange for keeping GST exemptions in place and increasing the GST to 12.5 per cent: 22 per cent are undecided on this and 32 per cent oppose it.
Property Council chief executive Ken Morrison says the research shows Australians support fair reforms to the tax system.
“Broadening or increasing the rate of GST has long been considered political poison, but that no longer reflects the attitude of the community,” Morrison says.
“Australians clearly understand the need for tax reform and as the research makes clear, they want a tax system that is fairer and simpler.
“Changes to the GST need to be taken out of the too-hard basket.
"Governments know stamp duty distorts the economy, hurts housing affordability and is a rollercoaster source of revenue.
"National tax reform needs to replace our most distortionary taxes with more efficient revenue sources.”
(The research is based on the answers of 1,957 respondents surveyed nationwide in May and June 2015.)
Source: Australia Property Inveator
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