‘A bad tax’: Housing Minister says stamp duty should be axed

Asked if she was in favour of the proposal, O’Neil was unequivocal.

“It’s a really good idea. Stamp duty is a bad tax. It prevents people from moving around the housing market in the way that suits them best, and it creates cost for everyone who is selling or buying a house. It is a bad tax,” she said.

But she stopped short of stating that she would be pursuing the matter as part of the government’s housing policy, noting that changes on this front are out of her purview.

“We can certainly ask the states to [phase out stamp duty] but as you know I’m a Commonwealth minister and it’s not my power to tell states what to do.”

“One of the reasons that housing is a difficult issue for our country is that the three different levels of government all share some responsibility. I’m a Commonwealth minister, I can’t come in and take over the states’ role on this,” she stated.

Still, O’Neil was clear that jurisdictions that made headway on the matter had her support.

“We saw an announcement from the Victorian government about some changes that they’re making on that and I think it’s great,” she said of the state’s move to pause stamp duty charges on new apartment builds for a period of 12 months.

“The moves that some states and territories have made to wind it back or to remove it all together are really positive and I’m really supportive of it,” O’Neil added.

The Real Estate Institute of Queensland (REIQ) welcomed O’Neil’s comments, as the organisation has long advocated for the tax to be reviewed, particularly with an eye to encouraging healthy turnover in the market.

“Phasing out stamp duty has the potential to drive a significant trend in ‘rightsizing’ to appropriately sized and located homes, substantially increasing the supply of housing into the market,” commented REIQ CEO Antonia Mercorella.

The REIQ would like to see the state undertake a phased transition to a land tax-based model starting with first home buyers as well as the abolishment of stamp duty for downsizers aged over 55 moving to a home with fewer bedrooms.