Leaders call for stamp duty reform
THERE are call for urgent stamp duty reform to stimulate the market and protect jobs during the coronavirus pandemic.
The Real Estate Industry of Queensland (REIQ) this week put forward a relief package to the State Government listing a raft of recommendations to minimise the economic impacts of COVID-19.
Among the most immediate recommendations, the REIQ is asking the State Government to:
- Extend the First Home Buyers Grant to include established housing.
- Reduce stamp duty by 75 per cent for the period of the coronavirus pandemic.
- Reduce development application costs across all Local Governments by 50 per cent and streamline application processes.
REIQ Gold Coast zone chairman Andrew Henderson applauded the proposed package but said stamp duty reform must go even further.
"There needs to be some heavy stamp duty reform. It's well overdue and it needs to be permanent going forward, not just for COVID-19," he said.
"The world has changed but the government continues to have a tax that doesn't suit the individual's needs because they can't control their spending."
The call for major stamp duty reform was echoed by Kollosche director Michael Kollosche who said a serious reduction would stimulate transactions.
"I would have gone even further and dropped stamp duty to one per cent," he said.
"I think 5.5 per cent even under normal circumstances is ridiculous.
"To drop stamp duty down considerably in the current environment will encourage more people to take advantage of it and transact."
Harcourts Coastal managing director Dane Atherton said an analysis of their buyer inquiry showed a 100 per cent increase in the week following the Job Keeper package announcement, however further incentives were needed to stimulate the market.
"The State Government has been a significant beneficiary of the property industry for many years and it's time they took steps to preserve jobs in the industry by relaxing some of the revenue streams that have been so lucrative," he said.
"The property sector includes everyone from building inspectors, to pest inspectors, stylists, renovators, removalists … there's a big spin off.
"Stimulating property could be the thing that keeps the economy going."
Ray White Surfers Paradise Group CEO Andrew Bell said a reduction in stamp duty was the most pertinent recommendation for government to consider.
"Without a stimulant the State Government may receive no stamp duty whatsoever," Mr Bell said.
"A discount on stamp duty would certainly support the real estate market; helping both existing property owners by avoiding a downturn in prices, as well as new home buyers by making it more affordable to purchase."
Originally published as Leaders call for stamp duty reform