REIWA calls for strategic stamp duty reform 

REIWA firmly believes that the single biggest hurdle for prospective home owners in Western Australia entering the property market is the financial barrier of stamp duty.

In a survey conducted by REIWA, 90 per cent of respondents considered stamp duty to be a significant barrier to home ownership, which is why the Institute is calling for every political candidate to commit to changing the way stamp duty is paid.

REIWA is advocating for WA buyers to be given the choice to either pay the tax upfront (as is currently the case) or opt for an ongoing annual fee instead. 

By introducing a two-stream revenue collection method, buyers would be able to decide for themselves which option is most beneficial, creating a more equitable taxation system.

With the 2021 WA Election only a few weeks away, REIWA is urging all political parties to commit to reforming stamp duty. 

Example case

If a family saves $50,000 for a home deposit, which is no easy feat, and is looking to buy a home at the current median house price of $495,000, $17,765 of that deposit will go towards stamp duty. If you also factor in the Lenders Mortgage Insurance (LMI) cost of $16,010, that hard-working couple has now lost almost all of their deposit requiring them to take out a mortgage worth almost 95 per cent of the property value.

While the government cannot remove exorbitant LMI charges, it has a duty to review taxation policies that are creating a barrier to home ownership across WA and the country. 

Related articles

REIWA has been a long time advocate of the removal of stamp duty in favour for a broad-based land tax system. 

If you are interested to find out more on REWA's advocacy efforts relating to stamp duty, read some of our articles below:

• 29 May 2020: Breaking down the basics of stamp duty.
• 22 May 2020: State tax reform is officially on the agenda for the 2021 State Election.
• 16 May 2020: WA needs to look ahead and abolish stamp duty.
• 1 May 2020: Perth property prices stabilise despite lower sales volume.
• 11 April 2020: Property market still open for business.
  
• 31 March 2020: West Australians to benefit from latest relief package, but stamp duty needs to be reviewed.
• 22 March 2020: New relief package welcomed but more is needed to ensure housing security.
  
• 14 February 2020: REIWA warns against dropping current stamp duty relief.
  
• 30 November 2019: It’s time to review our state tax system.
• 8 November 2019: Stamp duty concession for seniors a no brainer.
• 26 October 2019: First home buyer threshold needs to be increased.
• 23 October 2019: Stamp duty rebate gains traction with off-the-plan purchases.
• 17 October 2019: WA property industry stands together seeking government support.
• 9 October 2019: REIWA launches six-point plan to boost WA’s economy.
• 26 August 2019: REIWA calls for less talk and more action around stamp duty.
• 22 July 2019: REIWA calls for WA to take action and abolish stamp duty.
• 9 May 2019: Bold reforms lacking in WA Budget.
• 1 April 2019: Federal incentives required to help states and territories abolish stamp duty.
• 25 March 2019: REIWA calls on federal political parties to not forget about WA.
• 24 January 2019: REIA calls for Federal Labor to be transparent about property taxes.
  
• 20 December 2018: Budget boost calls for policy innovation to drive economy forward.
• 10 May 2018: ‘Business as usual’ budget fails to reinvigorate property market.
• 9 May 2018: Continued economic growth the focus of Federal Budget.
• 9 April 2018: Increasing property taxes won’t fix WA’s budget woes.