Stamp duty collected between 2020 and 21 was a record $ 23.97 billion, according to the latest Australian Bureau of Statistics tax statistics.
The Australian Bureau of Statistics (ABS) recently released tax statistics for the 2020-21 fiscal year. This data shows an increase in property tax revenues and a surge in stamp duty revenues for state and local governments.
Throughout the year, property taxes, including stamp duty, account for $ 58.39 billion in state and local government revenues, 7.6% higher annually, or equivalent to a record high of 51.7% in total tax revenues.
Of this $ 58.39 billion in revenue, $ 23.97 billion, or 21.2% of state and local government revenue, comes from stamp duty, the largest share since 2017-18.
Stamp duty revenues increased 25.7% annually, setting a new record high and the largest year-on-year increase (29%) since 2009-10.
Stamp tax revenues record highs throughout the year in New South Wales ($ 9.6 billion), Queensland ($ 3.954 billion), SA ($ 1.012 billion), and Tasmania ($ 348 million). It reached, but was the highest since 2017-18 in Victoria ($ 6,622 million). .. Stamp duty revenue at WA ($ 2.09 billion) is the highest since 2007-08, NT ($ 91 million) is the highest since 2016-17, and ACT ($ 246 million) is 2018-19. It was the best since the year.
As the graph above shows, all states and territories recorded an increase in stamp duty revenue, and only Victoria recorded a single-digit annual growth rate.
Of course, stamp duty charges are not uniform across countries, and in some states and territories they are much more dependent on stamp duty revenue.
As highlighted in the graph above, more than 20% of New South Wales and Victoria’s state and local government revenues come from the 2021 stamp duty.
Stamp duty accounted for 10% to 20% of revenue elsewhere, but the share of each state and territory as a whole has increased over the past year.
The chart also emphasizes how volatile this source of income is. Stamp duty in New South Wales in 2020-21 accounted for 24.5% of total state and local government revenue, up from 19.5% in the previous year.
In most states, there are similar fluctuations in the percentage of income from stamp tax each year. This emphasizes the high uncertainty of this source of income and how state and local government finances are significantly affected by real estate performance. Market and trading volume.
Given its variability, it is clear that stamp duty is an unreliable source of income for the government, and for potential buyers, stamp duty impost discourages people from moving home more regularly. ..
This fact is essential by the state government, given that in most states and territories in recent years, the government offers stamp duty concessions or exemptions to the first homebuyers to buy or build a new home. Is recognized in.
As emphasized, stamp duty revenues are not uniform and the New South Wales and Victoria State Governments have become most dependent on this revenue. In short, they are most vulnerable to income holes when the market changes.
It makes sense to move away from stamp duty, which was intended to happen after the introduction of GST, but the challenge for the state government is to find a way to close that revenue gap.
In reality, if stamp duty is abolished, it will have to be replaced by another form of tax, perhaps a comprehensive land tax, making the transition from stamp duty to a new tax a difficult part.
The challenge of reliance on stamp duty could rise again in the coming years. 2021-22 was largely a bumper year for real estate transactions, but from 2022-23 onwards it is looking down on high interest rate barrels, delaying price increases and potentially reducing stamp duty revenues. there is.
This is why the federal and state governments need to work together to find a way for the state government to move away from stamp duty without incurring significant revenue losses.
Guaranteed revenue flows will better allow state governments to plan future spending without the uncertainty created by taxes such as stamp duty.