When I bought my current home, the stamp duty was 3% of the purchase price. Now, many years later, I am paying just under 5% for the house we just bought. The stamp duty brackets haven't changed in 20+ years, even though house prices have rocketed over that time.

The average person would need to take out a home loan just to move to a house of similar value to the one they are selling!

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Harrow said..
When I bought my current home, the stamp duty was 3% of the purchase price. Now, many years later, I am paying just under 5% for the house we just bought. The stamp duty brackets haven't changed in 20+ years, even though house prices have rocketed over that time.

The average person would need to take out a home loan just to move to a house of similar value to the one they are selling!

Yes stamp duty is a scandalous tax which should be abolished, and it was supposed to when GST came in, the problem is state governments rely on it for revenue so chances of it being abolished in the real estate conveyance is unlikely although they have been removing it slowly for many years on many other transactions (e.g. loan and security duty, deed duty, share transfer duty etc) since GST was introduced. I don't agree however that the GST rate should be increased from 10% to a higher figure e.g. 12.5% to compensate the states. We are already taxed enough as it is and I feel state governments should be finding savings as we are over governed in Australia. Perhaps the rates of land conveyance duty should be reduced to a much lower scale.

Stamp Duty is an insidious tax....

Just last week I spoke to the ATO regarding being charged GST on the premium after state stamp duty was added on my BUPA pet insurance - wouldn't normally bother with the insurance but our dog likes eating blowfish! House insurances etc charge GST on the premium before stamp duty but apparently there was a ruling a few years ago that allows them to calculate the GST amount on the total amount.

The reason went through to the keeper because I'm no accountant - 2 friends who are accountants and the accountant at my work all reckoned that GST is calculated pre addition of stamp duty - but suffice to say that the Feds would be very happy with the extra sneaky 3 or 4% on top of the legislated 10% !

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Harrow said..
When I bought my current home, the stamp duty was 3% of the purchase price. Now, many years later, I am paying just under 5% for the house we just bought. The stamp duty brackets haven't changed in 20+ years, even though house prices have rocketed over that time.

The average person would need to take out a home loan just to move to a house of similar value to the one they are selling!

I think there were moves to try and remove this, but only for older people downsizing. I guess the incentive was meant to be to make room for younger people when you don't need the space.

I agree though. Once you are entrenched in Sydney, moving is an expensive task. 5% is crazy!