Homeownership Held Hostage": Stamp Duty Slammed as "Massive Burden" on Australians

The affordability crisis in Australia faces another harsh critic, with leading economist Anne Flaherty calling stamp duty an "incredibly inefficient tax" that acts as a "massive burden" on homeowners.

Flaherty, Economist at REA Group, spoke out against the tax in an interview with Sky News Australia, highlighting its detrimental effects on market mobility and individual aspirations. "Most of us agree," she stated, "that stamp duty is a major roadblock, keeping people stuck in homes that no longer suit their needs and hindering a healthy market turnover."

The crux of the issue lies in the "bracket creep" phenomenon, where rising property values push buyers into higher tax brackets, significantly increasing the upfront cost of moving. This, according to Flaherty, discourages potential sellers, creating a stagnant market and further fueling affordability concerns.

"It's a vicious cycle," she explained. "People hold onto their homes because the cost of moving, thanks to stamp duty, is simply too high. This reduces available options for buyers, pushing prices even higher, and perpetuating the problem."

The partnership with realestate.com.au adds further weight to Flaherty's claims, suggesting the issue resonates within the wider industry. The call to action is clear: reform or abolish stamp duty to unlock a more dynamic and accessible housing market for all Australians.

Key Takeaways:

• Stamp duty is seen as a major barrier to market mobility and homeownership.
• Rising property values exacerbate the issue due to "bracket creep."
• Stagnant market and affordability concerns are linked to the tax.
• Industry experts and data providers urge reform or abolition.