How Badly Does Stamp Duty Affect Your State?

Stamp duty is one of those annoyances first home buyers often don't notice, and one of those state taxes that didn't disappear in the wake of the GST. Research by Bankwest suggests that Victorians pay the highest overall percentage of stamp duty, while those in the ACT pay the highest absolute numbers.

Here's the figures for stamp-duty on a median price property in each state, according to Bankwest's calculations:

You probably can't do much about stamp duty in practice — moving states is even more expensive and no state government seems likely to eliminate that revenue — but it might be a reason to hold off on buying for a while if you live in Victoria but fancy Queensland.

[Bankwest via AFR]


Comments

    Stamp duty only effects people whom buy and sell houses on a regular basis.

    A home buyer will usually keep their home for a long time and just take it on the chin, but someone buying and selling houses to make a profit are going to have to pay.

    No it doesn't Anthony, it affects anyone buying a house who has to cough up for yet another tax, at a time when money is usually already tight. Not sure where these figures come from, but a typical 4 bedroom house in the traditional 1st-home-buyer belts of SA would cost you around $450,000 and that incurs nearly $25K in stamp duty.

    If you're buying and selling regularly you factor it into your profit and loss. If you're buying a house to live in it's just a tax that you pay for doing nothing.

    David, that road you drove on today, that school you see kids going in and out off - who paid for all that?

    ...must free eh?

      Nenad, I don't have kids, and any kids I have will not be going to public school - I don't want to pay for your kids. I pay tolls everyday to get to work. We are over taxed by a very inefficient government. I've worked as a sub-contractor to the government sector and it a joke how much of our tax money they waste.

        So you'll be magically able to find a private school in Australia which takes no funding from the government. That should be interesting.

        Whatever the form of taxation, whether or not it is "fair" and how efficiently it is collected or spent, it all comes down to one thing - taxes are (or should be) for the greater good. I may not like some of the things my taxes are spent on, just as much as you may loathe the things I like them to be spent on.

        In summary, stop bloody whingeing. I'm originally from the land of the "whingeing pom" and can only think that label was invented to distract attention from the international class whingers born and bred in Australia.

        MrQuan, we don't live in the world of Atlas Shrugged. As a part of society, you pay your bit to maintain society in general, and society in general pays you back, perhaps in intangible ways - safer roads, lower crime rates, a higher standard of living. Quit your whining and appreciate some tax is part and parcel of living in a social democracy.

      Vehicle registration fees, council rates and (theoretically) revenue from speed cameras pays for our roads. Main roads are covered by the state, smaller local roads are covered by the local council.

    ...that desalination plant that does nothing, that myki ticketing system that doesn't work, those police who spend their time collecting yet more taxes rather than fighting crime, those roads to the middle of nowhere which are used by 1% of the population. Yes, our taxes are very well used in Victoria!

    One thing often stated about our spiralling house prices in the lack of availability. This is because most people are forced to stay in the property where they already live, because of of this ridiculously high tax. Therefore the market doesn't move and the few properties that become available are forced up in price through competition.

    Secondly the money to pay this tax has to go on top of your new mortgage, and then slug that tax at the going interest rate, and you end up only paying the stamp duty and interest on the stamp duty for the first 5-7 years of the loan, if you make only the minimum payments.

    So you're propping up the government(s) and the banks at the same time as perpetuating the spiralling housing market. If you wanted to do something about home affordability MR SWAN, THEN REDUCE THE STAMP DUTY.

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