The Housing Industry Association's Stamp Duty Watch report has revealed that stamp duty is costing the typical Australian family more than $1,200 in additional mortgage repayments each year. That's $100 every month.
Higher property prices are translating into higher stamp duty payments, says HIA Senior Economist, Shane Garrett.
“The burden of stamp duty has grown much heavier during 2016, with strong dwelling price growth translating into disproportionately larger hikes in the stamp duty bill for homebuyers,” explained Garrett.
Garret said the average stamp duty payment is now a substantial $19,975, which "eats up" deposits and "forces families to take on much larger mortgages".
Garrett said governments should consider removing stamp duty as a way to improve housing affordability.
“Stamp duty hurts families and acts as a barrier to employment mobility and retirement downsizing. A plan for its removal needs to be at the centre of a national housing affordability strategy," he said.
Based on dwelling prices during November 2016, the typical stamp duty bill nationally is $19,975 which is an increase of 7.4 per cent on a year earlier.
- The average stamp duty bill is currently highest in Victoria ($28,538), followed by NSW ($24,965) and the Northern Territory in third place ($20,805).
- The stamp duty bill on the purchase of a median-priced home is $17,960 in the ACT, $15,830 in South Australia and $15,390 in Western Australia.
- Queensland remains the state with the lowest stamp for a typical purchase ($6,825) followed by Tasmania ($9,135) with the second lowest stamp duty costs.
Australians support scrapping stamp duty
Consensus emerging that stamp duty must go
The stamp duty debate