Stamp duty savings helping buyers

Stamp duty savings helping buyers

Posted on Friday, March 28 2014 at 3:14 PM

Stamp duty is a significant barrier to people buying and selling a home in the Australian Capital Territory, according to the Real Estate Institute of Australia (REIA).

A housing affordability summit revealed the dreaded stamp duty
discourages people from making a move and, in turn, slows the turnover of

“This not only inhibits labour mobility, but also distorts choices
between renting and buying,” ACT Treasurer Andrew Barr says.

However, Barr believes the phasing out of stamp duty in the ACT, which
was part of a tax reform in 2012, is already saving homebuyers thousands of
dollars and will continue to help buyers in the future.

The ACT is now the only jurisdiction in Australia to have begun getting
rid of stamp duty, after it was recommended in the Henry Tax Review.

“The buyer of a $500,000 home is today saving about $3400 in stamp duty,
compared to before the start of tax reform,” Barr says.

The ACT Government has also:

reduced land tax on properties with average unimproved
land values between $75,000 and $390,000,

introduced variable thresholds for affordable
housing, based on dwelling size,

increased the property and income thresholds for
the homebuyer concession scheme.

These changes will mean even more homebuyers will only pay a minimal
duty of $20 when purchasing a new home up to the value of $425,000.

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