Stamp duty is Australia’s most inefficient tax. It punishes people who move, makes down-sizing and up-sizing difficult, decreases labour mobility, and, since it is only imposed when people move, is incredibly poorly targeted with respect to wealth and the opportunity cost of land.

A land tax, ideally an annual impost on the unimproved value of land, is far more efficient and equitable. In addition to resolving the social and economic problems raised above, it adds consistency to governments’ property tax receipts and in so doing improves their ability to plan for the future.