Following on from last week’s Thodey Report, which recommended that NSW stamp duty should be replaced by land tax, REIWA has called upon Western Australia to do the same.
“Described in the report as an ‘unfair and damaging tax’, stamp duty is the wrong tax for rebuilding the State Governments’ capability to deliver for its citizens – clearly this also applies to WA,” REIWA President Damian Collins said.
Collins is in favour of a broader land tax, which he believes will be key in assuring long-term economic growth.
“According to Deloitte, removal of stamp duty could lead to a 60 per cent uplift in transactions, generating an additional $1 billion to the WA economy, which is why a tax switch would establish the right settings for long-term growth,” Mr Collins explained.
“By introducing a broad-based tax system, payments will be made over a longer period, allowing those who need to move, the ability to do so. Having an opt-in model only on new transactions will mean that those who have paid stamp duty are not unduly hit by the replacement tax.”
REIWA is calling for both the WA Government and Opposition to make the removal of stamp duty a key element in their upcoming economic strategy.
