The Real Estate Institute of Victoria (REIV) welcomes the State Opposition’s commitment to abolish stamp duty for first home buyers, an overdue reform that will help address the housing affordability crisis facing many Victorians.
Stamp duty has long been recognised as one of the most inefficient and distortionary taxes in our system. Often labelled a “lazy tax”, it not only imposes a significant financial burden on buyers, particularly younger Victorians entering the market, but also stifles labour mobility and locks people into properties that may no longer suit their needs.
Currently, stamp duty on a median-priced home in Victoria consumes nearly half the average annual income, representing a clear barrier to ownership that penalises aspiration and discourages economic activity.
REIV Interim CEO Jacob Caine said “The REIV has consistently called for a full-scale review of property-related taxes in Victoria. While this proposal is a positive and practical first step, it must form part of a broader conversation about long-term structural reform of the state’s taxation system.
We encourage all sides of politics to work together toward a fairer and more efficient housing and tax system, one that prioritises affordability, supports economic growth, and delivers better outcomes for all Victorians.”
Media Contact: media@reiv.com.au - 03 9205 6607