In this edition we take a close look at the stamp duty rebate. A hot topic that looks at an area of our industry that (many beg) is in desperate need of change. Well at least this is the case, according to Grant Thornton’s The Real Estate & Construction Industry Insight Report, which was released in November 2014.
 
Thornton’s report was compiled from direct meetings with public and private organisations including developers and owners of commercial and residential property, builders and civil contractors and industry consultants.
 
Today we look at what Stamp Duty means to the Government, what impact does it have on Queensland families looking to purchase and what ideas the general public have come up with to replace the current system if indeed it ever does come to an end!
 
1.     Stamp Duty is a major revenue raiser for the Government
Property is always one of the first outlets in which the Government will turn to whenever they need to reduce the budget deficit or increase the surplus. In Queensland alone property taxes contribute to an overall $3.8 billion in revenue raising dollars. This breaks down to $980 million in land taxes, $2.42 billion in stamp duty and $390 million in other taxes.
 
2.     Does Stamp duty have a negative impact when it comes to affordability?
While stamp duty is an additional cost that comes at the expense of the purchaser, it is something Queensland purchasers and financiers take into account when budgeting for property purposes and is generally considered ‘just part of the process’.  While it is a significant cost, it is one purchasers are prepared for when starting the process of a new property purchase, for most families it does not have an overly negative impact on their budget and affordability.
 
3.     If Stamp Duty was scrapped, what could be the alternative?
Should the decision to eradicate stamp duty take place, those who responded to Thornton’s study suggested some of the following would be suitable alternatives:
 
- Introduce a reasonable value threshold (e.g. $500,000) before stamp duty applies.
- Reduce possible infrastructure charges.

- Implemet more concessions for first home buyers.
- Introduce a scheme (somewhat similar to HECS) whereby home buyers have the option to pay stamp duty and taxes over a period of time instead of all being required upfront.
- Offer an incentive for home owners by applying a discount on taxes and stamp duty when a property is listed as a primary place of residence.
- Reduce/restructure current property taxes.
-  Increase GST to replace stamp duty.
 
These are really interesting concepts and straight from the mouth (or keyboard) of the general public.  What do you think of these ideas?  Are you for or pro the current Stamp Duty system?
 
We would love to hear your thoughts on this very popular topic.   Do you think it’s time for a change?  Comment below or phone Hannah today to find out how Stamp Duty could impact your next sale or purchase.