The long-awaited federal inquiry into housing affordability and supply in Australia has been welcomed this week by industry bodies.
Real Estate Institute of Australia (REIA) President, Adrian Kelly said the inquiry will address property taxation in the form of stamp or transfer duties and land tax, which are among the largest barriers to housing affordability and consistently performing markets.
“Families across all the states and territories, except the ACT, are paying more stamp duty today than 20 years ago and that is time to get serious about stamp duty reform”, Kelly said.
“Australia has had the fourth-fastest house price growth out of the world’s advanced economies over the past 20 years.
“Politicians cannot on one hand gripe about housing affordability; and then on the other say we need this income from home buyers and owners to fund public sector operations.”
The REIA has called on the Council of Federal Financial Relations to take the issue seriously and nationally, rather than just shift responsibility off to States and Territories.
Kelly observed that the massive market entry from First Home Buyers in both 2009 and 2020 show the power of waiving taxes and stimulus programs in boosting house ownership.
“The lack of national coordination has led to limited supply of both new and existing listings across the board”, he said, adding that now more than ever, there is a need for fact-based and bi-partisan support on policy issues for home buyers and home owners.
The REIA is due to release its Housing Affordability Report – the case for home ownership – a 21 year analysis later this week.