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Stamp duty should be scrapped, with the loss in state governments' revenue recouped from an increase in the goods and services tax, the Property Council of Australia has proposed.
In its submission to the federal government's tax white paper reform process, the council argues stamp duty is inefficient and nothing more than "a runaway cash grab that's hurting Australia's economy and locking out potential home buyers".
It has released figures showing the cost of stamp duty to a home buyer with an average-sized mortgage has increased by 795 per cent in Melbourne and 749 per cent in Sydney during the past 20 years.
"The community should be outraged that they are being slugged with such excessive charges, especially at a time when housing affordability is an acute challenge," the council's chief executive, Ken Morrison, said.
The council argues property owners have become Australia's largest collective taxpayer contributing 9 per cent of total tax revenue.
Property taxes make up as much as 46 per cent of state, territory and local government budgets.
Stamp duty alone contributes more than 20 per cent of the total revenues of the NSW, Victoria, Western Australia and Northern Territory governments.
In NSW, it topped $5 billion for the first time this year.
The cost of stamp duty over the life of an average mortgage is now $61,542 in Sydney, $56,616 in Melbourne, $49,701 in Darwin and $35,427 in Canberra, the council's modelling showed.
For the full story follow link to Sydney Morning Herald