REIQ calls for abolition of stamp duty
- Written by Martin Philip
Australia 19 January 2015. Queensland’s peak real estate industry body has called for the abolition of stamp duty in a pitch to the state’s political leaders for further reforms to promote growth in the residential property sector.
Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said a broad legislative program was needed to create an even stronger local real estate industry.
Ms Mercorella said the State’s lawmakers had already shown a commitment to reform through the introduction of the Property Occupations Act in 2014 - but said more needed to be done.
“Queensland’s residential real estate sector is in recovery mode and it’s important to build on this momentum,” she said.
“Real estate is crucial to the Queensland economy, contributing more than $8 billion towards Queensland’s gross state product and supporting almost 50,000 jobs throughout the state.
“That’s why we’re challenging the state’s lawmakers to ensure real estate reform is at the top of the political agenda throughout 2015.
“The real estate industry is vital to the state’s prosperity and we want to see further reforms introduced in Queensland, including:
* Abolition of stamp duty on property transactions;
* Reinstatement of first home owner grants for existing housing; and
* Allowing first homebuyers to access their superannuation to purchase a property.”
Ms Mercorella said the abolition of inefficient property taxes, along with incentives to generate more transactions and turnover, would pave the way for further growth in the industry.
“Stamp duty on property transactions should be abolished and replaced by a more efficient source of revenue,” Ms Mercorella said.
“It’s a regressive tax which imposes additional costs on property transactions, thereby discouraging turnover of housing and distorting choices between renting and buying.
“It also distorts choices between moving house and renovating and can deter labour mobility for those changing jobs, resulting in reduced investment in the property market.”
Ms Mercorella said reinstating the full spectrum of first home owner incentives would greatly assist with Queensland’s residential housing recovery.
“We want to see the first home owner grant for existing housing reinstated, so that incentives exist for both new and established housing,” she said.
“First home owner grants are an important form of financial assistance and there’s no sound basis for the preferential treatment which currently exists for buyers who purchase newly built properties.
“A more widely available first home owner grant will strengthen the real estate market, while delivering a crucial boost to the state’s wider economy.
“The REIQ also wants to encourage younger Queenslanders to realise their dream of home ownership.
“One of the biggest obstacles they face is getting a deposit together, so it makes sense to allow them to access their super for this purpose, provided the money is paid back within a specific period.
“We believe this raft of reforms has the potential to boost real estate markets throughout Queensland and promote growth and jobs in the state economy.”