Removing stamp duty could add 100,000 home sales a year to NSW
The ACT's phase-out of stamp duty increased economic activity by about 80 percent over a decade.
Research suggests that scrapping stamp duty could significantly boost Australia's housing market. Victoria University found that the ACT's partial phase-out increased economic activity by about 80 percent since 2012.
Modelling estimates removing stamp duty entirely in NSW could create around 100,000 additional home purchases yearly, with Victoria seeing about 90,000 more. The tax discourages people from moving, making the market less fluid.
New Zealand abolished it entirely but offset the loss with higher GST. Economists argue a land value tax would be more efficient, generating steadier government revenue and encouraging development of underused property.
- About 80 per cent since 2012
- ACT economic activity increase
- 100,000 home purchases
- Estimated NSW additional sales yearly
- 90,000 home purchases
- Estimated Victoria additional sales
- 6.6 per cent
- Potential home ownership increase
Why it mattersMore housing transactions mean more choice for buyers, lower friction in the market, and less lock-in costs that discourage people from moving.
AustraliaStamp duty costs Victorians an effective 300 percent tax rate on moving, adding up to $40,000 per home purchase. Removing it would directly cut housing costs.
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