Stamp Duty Looks Simply Out of Context

stamp dutyThe government will take a few key decisions after it diligently analyses the tax structure prevalent in the country. The stamp duty- widely dubbed as the ‘worst form of taxation’ can come under the scrutiny, too. Andrew Jennings talks about the issue in an article for the website The Adviser.

Property council may intervene

The property council, says Jennings, will intensely argue in favour of removal of stamp duty. Substitution of revenue sources has long been talked about and it may be worthwhile to replace stamp duty with a tax which is more efficient and less stern on the investors. Stamp duty, for all its worth, is a tax which inhibits growth. In the process, it hurts the economy over a pan nation scale.

Broad-based taxes shall apply

There is a consensus that Australia needs broad-based taxes in particular; those that facilitate further investment rather than deterring them.

You can read the original article here.

Stamp duty is way beyond the logical

To me, it comes as outright funny how Australia can have stamp duty in the vicinity of 3.5% in certain cases. Aren’t the global standards 1% of the purchase price. One word- it’s a herculean tax! Stamp duty brings in a rollicking $1 billion and more to the exchequer each year- needless to say why government is not too keen to cast it away from the structure of Australian taxation.

In fact, it is interesting to note that the Real Estate Institute of Australia feels that property prices could come down by as much as 10% if stamp duty becomes a thing of past.

What is your take on CGT and stamp duty?