Fed: Home buyers crippled by stamp duty

AAP General News (Australia)
12-01-2008
Fed: Home buyers crippled by stamp duty

EDS: Embargoed until 0001 AEDT Monday December 1



MELBOURNE, Dec 1 AAP - Growing stamp duty bills on residential properties are impeding
Australian home buyers' ability to enter the housing market, according to a new report.

The inaugural bankwest (bankwest) Residential Stamp Duty Report found stamp duty on
the typical home has soared 59 per cent over the past five years, almost double the rise
in household income over the same period.

Almost $53 billion in stamp duty receipts, both residential and commercial, has been
paid to state and territory governments over the past five years.

Annual stamp duty revenues have increased 77 per cent over that same period.

The research found struggling home buyers were forced to set aside at least 20 per
cent of their annual household income to pay stamp duty bills in four out of eight capital
cities in July 2008 - Sydney, Melbourne, Adelaide and Perth.

This compared to only two cities - Sydney and Melbourne - in 2003.

Home owners in Sydney and Melbourne would need almost three months of their salaries
to pay stamp duty.

Brisbane has the lowest stamp duty bills, with home owners only having to work an average
of one month to pay stamp duty for median priced properties.

The rate of stamp duty charged on a property purchase increases as the property's value
passes through thresholds.

The data was sourced from state government revenue offices and the Australian Bureau
of Statistics.

AAP kb/gfr/jm/mn

KEYWORD: STAMP EMBARGOED (WITH FACTBOX)

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