In submission to the South Australian government, Property Council calls for stamp duty to be abolished.
Stamp duty on property purchases should be abolished, argues the Property Council in a submission to the South Australian government's review of state taxes. SA premier Jay Weatherill launched the review in February, before Treasurer Joe Hockey unveiled the federal government's own tax discussion paper.
Daniel Gannon, the executive director of the South Australian division of the Property Council, says stamp duty is a drag on an economy in transition like South Australia, which has seen its manufacturing sector shrink. He argues for a honeymoon period for people who've bought properties in the past few years and paid out large lump sums in stamp duty under the system now, saying they will be hit hard if forced to immediately transition to paying an annual payment under a broad-based flat land tax.
"We want to ensure a honeymoon transition takes place carefully and effectively to remove any chance of a double whammy impact," said Gannon, reports The Australian Financial Review.