01/12/2008 - 06:57

Home buyers crippled by stamp duty

01/12/2008 - 06:57

Bookmark

Save articles for future reference.

Growing stamp duty bills on residential properties are impeding Australian home buyers' ability to enter the housing market, according to a new report.

Home buyers crippled by stamp duty

Growing stamp duty bills on residential properties are impeding Australian home buyers' ability to enter the housing market, according to a new report.

The inaugural BankWest Residential Stamp Duty Report found stamp duty on the typical home has soared 59 per cent over the past five years, almost double the rise in household income over the same period.

Almost $53 billion in stamp duty receipts, both residential and commercial, has been paid to state and territory governments over the past five years.

Annual stamp duty revenues have increased 77 per cent over that same period.

Stamp duty bills in the six states and territories in the past five years were almost double, with Tasmania (177 per cent), Queensland (151 per cent), Northern Territory (145 per cent), Western Australia (127 per cent), ACT (111 per cent), South Australia (102 per cent).

Homebuyers in Nannup, Western Australia, have the seen the biggest rise in stamp duty bills as a percentage of household income over the past five years (35 percentage points).

Stamp duty thresholds have been left unchanged for owner occupiers in NSW, South Australia, Tasmania and the ACT since 2003, despite a 63 per cent national rise in house prices.

The research found struggling home buyers were forced to set aside at least 20 per cent of their annual household income to pay stamp duty bills in four out of eight capital cities in July 2008 - Perth, Sydney, Melbourne and Adelaide.

This compared to only two cities - Sydney and Melbourne - in 2003.

Home owners in Sydney and Melbourne would need almost three months of their salaries to pay stamp duty.

Brisbane has the lowest stamp duty bills, with home owners only having to work an average of one month to pay stamp duty for median priced properties.

The rate of stamp duty charged on a property purchase increases as the property's value passes through thresholds.

The data was sourced from state government revenue offices and the Australian Bureau of Statistics.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options