More than a quarter of Victoria’s homebuyers are hit by the highest stamp duty rate, which has sparked a call for a comprehensive reform of the $6 billion stamp duty. Ordinary buyers are now forced to pay nearly 44,000 yuan, 2.5 times that of the stamp duty in 2008. The median house price in Melbourne has doubled, resulting in a sharp rise in stamp duty costs. According to the Victorian Real Estate Association (REIV), in 2008, only 6.6% of homes sold for no less than 960,000 yuan. Exceeding this amount, 5.5% of the taxable amount is required, which is also the highest tax rate. But nowadays, the current stamp duty on 28.4% of homes is the highest. Because the state government failed to adjust the stamp duty rate, Victoria’s income soared from 2.8 billion yuan 10 years ago to nearly 7 billion yuan in 2017/2018.
In the context of a slowdown in the real estate market, Victoria’s stamp duty revenue in the last fiscal year was about $6 billion, but still accounted for a quarter of the state’s total tax revenue. The government collects stamp duty to approve the sale of real estate, so there is a large amount of income in the treasury that does not directly benefit the buyers. Cressida Wall, head of the Real Estate Commission in Victoria, said the stamp duty rate needs to be reassessed to “ensure that the housing market is properly reflected.” “In the past five years, stamp duty has increased by 17.9% as a percentage of full-year income. This means that, on average, Melbourneers now have to pay an additional 9 weeks to pay the rising stamp duty.” “$9.6 million The highest tax rate does not reflect the real situation of Melbourne housing prices.”
According to REIV data, Melbourne has 144 suburbs with a median house price of more than 960,000 yuan; and only 10 suburbs 10 years ago. According to the association’s data, the median house price in the Melbourne metropolitan area in 2008/09 was 428,000 yuan, which means that the stamp duty is only 17,700 yuan, and in 2008/19, the median house price in the metropolitan area was 810,000 yuan. The Victorian government argues that their goal is to reduce the stamp duty of first home buyers. First-time homebuyers are exempt from stamp duty when purchasing properties worth less than $600,000, and can enjoy discounts on purchases of properties worth less than $750,000. A spokesperson for the finance minister said, “We have seen the number of first home buyers more than the highest level in 10 years. Stamp duty income enables Victoria to provide all the services and infrastructure that people need to help increase productivity and livability. Sex.”
Anyone who purchases self-housing for 550,000 yuan or less can also get stamp duty concessions. But REIV CEO Gil King also urged the government to re-examine stamp duty levels and reduce taxes on property taxes. “A decade ago, $1 million was the highest price you knew, concentrated in the high-end real estate market – Toorak and Brighton luxury homes. But today, the $1 million price tag has become the norm in Melbourne’s suburbs.” Shadow Finance Director Louise Staley said that the cost of stamp duty is hurting buyers who are struggling with house prices.
