The Nationals WA have unveiled a new policy to abolish stamp duty for first home buyers.
WA Party leader Shane Love announced the policy at the party’s state conference in Bunbury last weekend, stating the $160 million policy would help up to 20,000 WA families over the next four years.
Nationals candidate for Darling Range Morgan Byas said the policy would be a huge boost for those locals struggling to enter the housing market amidst a housing and cost-of-living crisis.
“The housing crisis is a pressing issue for WA families, and first home buyers need more support to achieve their dream of home ownership,” he said.
“In places like Byford, where the median house price is $625,000 – well above the $450,000 stamp duty exemption cap set by WA Labor – this policy will make a huge difference.”
Under The Nationals’ policy, first home buyers purchasing a $500,000 home would save $7,500, while those buying at the median price of $625,000 in Byford would be $23,700 better off.
“This policy not only saves money, but it also shortens the time needed to save for a deposit, allowing first home buyers to move into their new homes sooner,” Morgan Byas added.
The Real Estate Institute of WA and the Housing Industry Association have been critical of stamp duty for years as Australia’s least efficient tax, and ACOSS, St Vincent de Paul, the IMF, and the UDIA have all expressed their support to transition away from stamp duty.
Pressure is currently being put on state governments around Australia to abolish the tax altogether.
Two years ago, the Chamber of Commerce and Industry WA released its report Stamping Out Stamp Duty, which highlighted how scrapping it would not only improve economic efficiency, but benefit households on a lower income who bear the brunt of the cost.
The report also showed how stamp duty adds 2.6 years to the time required to save a 20 percent deposit for a house for a full-time worker who earns the average wage in WA and saves 15 percent of their income.
“Stamp duty has its roots in 11th century England when William the Conqueror used land ownership records to develop a state taxation base,” the report said.
“When it was first introduced in Australia (circa 1865), the composition of Australia’s economy was very different; house prices were lower relative to income and moving around regularly was rare.
“Fast forward 200 years, and unsurprisingly, times have changed. Today, younger people are struggling to break into the property market, families are looking to move closer to jobs and schools, and older people or ‘empty nesters’ are more likely to want to downsize. Stamp duty has put these ambitions out of reach for many Western Australians and is widely acknowledged as one of the worst taxes in Australia.”
