REIV Disagrees With HSAR Report Stamp Duty Suggestion
The release of the Housing Supply and Affordability Reform (HSAR) report on Thursday (August 30) has generated debate about how well the report's recommendations suit individual states.
The HSAR report is the brainchild of the Council of Australian Governments and it aims to provide ways that the state and territory governments can help to reduce costs for homebuyers and property developers.
One of the suggestions was to make changes to the stamp duty tax.
In response to this recommendation, the Real Estate Institute of Victoria said that the introduction of a higher land tax is not the solution to make housing in the state more affordable.
REIV policy and public affairs manager Robert Lorocca said: "Replacing stamp duty with an annual land tax on everyone's home will not make housing more affordable."
He acknowledged that stamp duty is an "inefficient tax" and needed to be replaced but there is no other option at the moment.
This was highlighted on Friday (August 31) when the State and Territory housing ministers met to discuss the HSAR report's suggestions.
Mr Lorocca said that the Australians for Affordable Housing group's suggestion to slowly introduce the tax change was not practical.
Governments at all levels needed to focus on making financing homes easier for buyers not more challenging, he said.
He suggested that tax needed to be more reasonable and added that it may help to encourage more investment in housing developments.