Home loan stamp duty 'may be abolished'

Monday 22 June 2009

Article by Mozo

Aussie homeowners could find stamp duty on home loans abolished under the Henry tax review.

The Australian reported that the review has been inundated with calls for the end of stamp duty.

Both international and home-grown tax economists have stated that stamp duty must be removed because it is hindering the mobility of labour and leading to the poor use of housing stock.

And Melbourne University professor John Freebairn made his feelings known at a recent conference conducted by the Henry tax review at the Melbourne Institute after he called the tax "a piece of garbage", the publication noted.

Speaking to the Australian about the removal of stamp duty on home loans, Tasmanian treasury secretary Don Challen said a reform of state taxes "requires eight lots of political commitment and eight lots of legislation and that path is doomed to failure".

Aussies may want to start searching for low interest home loans after banks have started to increase their home loan rates as many predict the Reserve Bank will soon lift the official interest rate, rather than cut it.

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