Rising cost of stamp duty slammed by economists

In the aftermath of an increase in stamp duty taxes last month, housing industry bodies are lobbying to abolish stamp duty altogether due to new findings.

Research commissioned by the Property Council of Australia found that Australia’s GDP would increase by $3.3 billion through investments if stamp duty was replaced with the same amount of GST.

RELATED: Fixed rate home loans bounce back after four year slump

“Stamp duty is universally recognised as one of the most inefficient and harmful taxes,” said Property Council Chief Executive Ken Morrison in a report.

“It really hurts not just homebuyers but the whole economy,” he said.

The federal government enforced a 7.9% rise in stamp duty last month, which, according to the Housing Industry Association is a huge jump.

“Apart from the immediate effect of being over $19,000 worse off, stamp duty results in mortgage interest payments increasing by about $15,900,” said HIA Senior Economist, Shane Garrett.

“The end result is that the typical stamp duty bill of $19,045 can snowball up to about $50,000 once LMI and mortgage interest are factored in. This is an unacceptable burden to place on ordinary homebuyers,” Garrett said.

A report by Deloitte Access Economics found that the economic impact of stamp duty works out to be an extra $20 per week for each Australian household to bear. 

The Property Council of Australia and the Housing Industry Association are urging the Australian government to bring stamp duty reform to the table when they meet this week.

“Getting rid of taxes which harm the economy benefits everybody and should be a key objective of tax reform,” said Ken Morrison of Property Council Australia.

“That’s why abolishing stamp duty has to be on the agenda when federal, state and territory leaders meet this week.”

Are you concerned about stamp duty taxes affecting you? Save money where you can by getting the best home loan rate possible by comparing rates from our hub. Or, if you’re looking at refinancing we break down the market for you to compare here.

Home loan comparisons on Mozo - last updated 9 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% p.a.

    Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.

    Details
  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

    Details
  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

    Details
  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.

    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.