Stamp duty bills are steadily increasing
STAMP duty bills have increased almost three times faster than house prices since the 1980s and this trend will continue unless stamp duty is reformed.
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This result is contained in the latest edition of the Housing Industry Association’s Stamp Duty Watch report and provides an analysis of state governments increasing reliance housing taxes.
In Victoria, the typical stamp duty bill increased from 1.9 per cent to 5.2 per cent of the median dwelling price between 1982 and 2017 – equivalent to a surge of 4000 per cent in the cash value of stamp duty.
NSW home buyers fared little better with the stamp duty burden rising from 1.6 per cent to 3.8 per cent over the same period.
Increases in home prices cause stamp duty bills to accelerate because stamp duty rate brackets are rarely updated.
This is the problem of stamp duty creep.
In NSW, stamp duty rates have not been reformed since the average house price was $70,000 (1985).
State governments are compounding the housing affordability crisis.
Total stamp duty revenues have almost doubled over the past four years – from $11.7 billion in 2011-12 to $20.6 billion in 2015-16.
Most of this is likely to have come from residential building.
State governments are now more reliant on stamp duty revenues than at any time for a decade.
This trend will continue unless state governments recalibrate their taxes on housing.
The stamp duty burden is increasing under every metric: nominal dollars, real dollars, as a proportion of dwelling prices and as a share of total state revenue.
Without reform, this trend will continue.
By draining the pockets of homebuyers to the tune of over $20 billion each year, stamp duty is a central pillar of the affordability crisis.
A long plan to do away with the scourge of stamp duty would be a huge victory for housing affordability in this country.
Shane Garrett, senior economist, Housing Industry Association
Community support for Christmas appeal shines
THE Salvation Army has been overwhelmed with the incredible outpouring of support and generosity from the Australian public with our Christmas Appeal – raising $15 million to help those in need.
We have been heartened to see our community unite and give hope where it’s needed most.
For many people in Australia and around the world, 2017 was a year that was filled with adversity and challenges.
Sadly, The Salvation Army continues to see an increase in people facing hardship, distress and crisis.
With all of life’s injustices, it can sometimes be hard to hold onto hope.
So as we enter the new year let us prioritise empathy, respect and compassion for one another, never underestimating the power these qualities can bring to those in need.
Let us renew our commitment to persevere and help those who are suffering, empowering them with love and hope.
And let us not underestimate the influence we all have to make a difference in the lives of others.
Leigh Cleave, communications and fundraising director, The Salvation Army
Vaccination reminder as school return looms
VICTORIAN parents returning from summer holidays are being urged to ensure their children are fully immunised before returning to childcare and school.
Parents are reminded of the Andrews government’s tough No Jab, No Play law.
The law requires all children enrolling in early childhood and care services to be up-to-date with their immunisations, unless they have an approved exemption.
Since introducing the law, Victoria has achieved its best ever immunisation coverage, with 94.9 per cent of Victorian children aged five now fully immunised – the second highest coverage rate in Australia.
Before No Jab, No Play, the coverage was just 92.5 per cent.
Thanks to the law and efforts by parents, Victoria has almost reached the 95 per cent ‘herd immunity’ target, which is necessary to halt the spread of dangerous and virulent diseases such as measles.
That is why the Labor Government is further strengthening the No Jab, No Play law to crack down on rogue practitioners who make false statements about a child’s ability to be immunised.
Under the changes, only Immunisation History Statements from the Australian Immunisation Register will be accepted when enrolling in childcare or kindergarten. Documents produced by GPs or other immunisation providers will no longer be accepted as proof of immunisation for enrolment.
And by having only one form of evidence accepted, the process of enrolling will be much simpler for both parents and early childhood services.
To receive reminders of when your child’s immunisation status is due, download the VaxOnTime app from www.betterhealth.vic.gov.au/immunisation. The popular app has now had almost 30,000 downloads.
Jill Hennessy, Victorian Health Minister