According to the latest report from the Housing Industry Association, the average burden associated with stamp duty upon residential property purchases for a non-first home buyer owner-occupied amounted to $17,811. That is equivalent to almost four months’ worth of average income. That also means that Australian households are shelling out more than $90 per month just to cover stamp duty.
Households in Victoria, New South Wales, and the Northern Territory are the worst hit, with average additional monthly mortgage repayments ranging from $112 to $117 due to stamp duty. Those in Queensland and Tasmania have it the easiest, but the stamp duty in the latter is still equivalent to 3.5 per cent of the cost of a non-first home buyer median range purchase.
HIA’s report comes after lobby groups fight for an easing of the taxes levied upon housing purchases. According to HIA chief economist Harley Dale, the stamp duty was not a fair burden upon ordinary Australians.
“The tax element of housing is incredibly high. Frankly, it is too high and it doesn’t make sense in terms of trying to let people get a leg up into the housing industry and put a roof over their heads,” Dale said.
He also lamented the fact that the federal government has not moved to appoint a housing minister.
“It’s quite a stark omission from the Turnbull government cabinet that there is no minister for housing,” Dale said. “I think that’s quite a big miss in terms of allocation of the importance of various aspects of the Australian economy.”