Inefficient and inequitable taxes
October 09, 2019
HIA supports the removal of inefficient and inequitable taxes such as stamp duty and payroll tax on new housing construction.
The Federal Treasurer, the Honourable Josh Frydenberg, has recently commented on the important role that States and Territories can play in developing a “shared commitment to lifting Australia’s productivity”.
The Treasurer noted stamp duty as a particular area of State influence, along with planning and zoning reforms. The Productivity Commission’s analysis in its 2017 Shifting the Dial report concluded that “Stamp duty taxes, while a bonanza in times of rising housing prices, are unfair and inefficient.”
HIA fully supports reform to the Territory’s current stamp duty regime. In recent research HIA commissioned it was found that up to 50 per cent of the final price of a capital city house and land package is the result of upfront taxes and red tape charged by the various levels of government.
This is a unique opportunity for the Territory Government to adjust its over-reliance on taxing housing, given the significant and ongoing receipt of mining royalty revenue that is received.
HIA also supports the replacement of stamp duty applied to new housing construction and payroll taxes with broad based community taxes. In addition, we support a restructuring of the GST so that (effectively) new housing construction is exempt and that the application of GST to new housing construction and existing housing is similar.
For more information phone Archie Wright 89956303