The Bulletin

Adelaide one of the most affordable cities to buy a house despite hefty stamp duty

 

South Australians could be coughing up the most for stamp duty when it comes to buying a house if the controversial tax is scrapped in the eastern states, new data reveals.

But even with the hefty upfront cost, a house in Adelaide would still be more affordable than one in Melbourne or Sydney.

In fact, it would still be cheaper to buy a house in Adelaide than Brisbane, Hobart and Canberra – all of which have higher median house prices but lower stamp duties in dollar terms.

Latest realestate.com.au figures show South Australians are forking out around $20,430 for stamp duty based on Greater Adelaide’s $482,000 median house price.

The only capital cities with a higher stamp duty dollar figure on houses were Sydney ($38,182 on a $950,000 median house price) and Melbourne ($39,290 on a $737,000 median house price).

The NSW and Victorian governments have floated the idea of abolishing stamp duty and replacing it with a form of land tax to help prop up the economy post-coronavirus.

The Real Estate Institute of South Australia (REISA) submitted a document to both sides of state politics last month suggesting a range of measures to stimulate the economy, including reducing stamp duty for a period.

However, SA treasurer Rob Lucas has knocked the idea back.

ā€œThe Government has committed $1 billion in economic stimulus to try and save jobs and local businesses, but abolishing stamp duty for 12 months is not part of our package,ā€ he said.

REISA president Brett Roenfeldt said it was a good time for the tax to be reassessed.

ā€œThis is definitely a disincentive for many people in either purchasing property for the first time of changing properties,ā€ he said

ā€œ(The government) needs to look very, very seriously at stamp duty on residential property to allow more people the opportunity to purchase and turn the real estate market wheels.

ā€œBut we’re going to have to have some form of tax there whether we like it or not.ā€

REA Group economic research director Cameron Kusher described stamp duty as an ā€œinefficient and inequitable way of taxingā€.

ā€œThe significant cost of moving homes imposed by stamp duty has far reaching, and in certain cases, long-term impacts,ā€ he said.

ā€œIt impedes the mobility of our labour force, is passed on to tenants from landlords through higher asking rent prices, and presents a particular burden for families, retirees, low-income earners and the unemployed who need to upgrade or downgrade housing as their life circumstances change.ā€

STAMP DUTY AROUND AUSTRALIA

Houses (region, median price, stamp duty on median)

Greater Melbourne: $737,000 – $39,290

Greater Sydney: $950,000 – $38,182

Greater Adelaide: $482,000 – $20,430

Greater Canberra: $696,850 – $19,906

Greater Darwin: $445,000 – $18,959

Greater Hobart: $505,000 – $18,460

Greater Perth: $480,000 – $16,815

Greater Brisbane: $543,000 – $10,285

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