Adelaide stamp duty cost ‘out of control’
STAMP duty paid on the average Adelaide house has increased by $14,100 over the past 20 years, making it one of the biggest impediments to entering the housing market
STAMP duty paid on the average Adelaide house has increased by $14,100 over the past 20 years, making it one of the biggest impediments to entering the housing market, the Property Council is warning.
Analysis by the council, released today, states the true cost of stamp duty in Adelaide — when interest is taken into account over the life of an average 25-year mortgage — is actually $30,393.
The analysis shows the stamp duty payable when purchasing a house at the median price of $420,000 is $17,330.
That is up 537 per cent on the $3230 payable on the $110,000 median house price in 1995.
In comparison, inflation has increased 167 per cent over the same period.
Property Council of Australia chief executive Ken Morrison said stamp duty was “out of control” and now “one of the biggest impediments to entering the housing market”.
The Council’s SA executive director, Daniel Gannon, said removing the tax would improve housing affordability for South Australian house hunters.
Stamp duty is included in a State Government review of the taxation system and is expected to be addressed in Thursday’s State Budget.
Federal Treasurer Joe Hockey has backed calls for SA to abolish stamp duty for home buyers and replace it with a broadbased land tax that includes family homes.
In an interview with The Advertiser, Mr Hockey said SA would have an “early adopter” advantage by being bold and axing stamp duty.