Stamp Duty Reform and Home Ownership

The NSW Government's 2020 proposal to replace stamp duty on all properties with an annual tax based on unimproved land values is estimated to increase home ownership by 6.6%, through changes in purchaser holding periods, a shift of tax burden from investors to owner‐occupiers and a relaxed depo...

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Bibliographic Details
Published in:The Economic record 2023-12, Vol.99 (327), p.492-511
Main Author: Warlters, Michael
Format: Article
Language:English
Subjects:
Home ownership
Investors
Ownership
Population growth
Property values
Stamp duties
Tax reform
Taxation
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Summary:The NSW Government's 2020 proposal to replace stamp duty on all properties with an annual tax based on unimproved land values is estimated to increase home ownership by 6.6%, through changes in purchaser holding periods, a shift of tax burden from investors to owner‐occupiers and a relaxed deposit constraint. The model of home ownership highlights the importance of purchasers' holding periods, with implications for the effects of tax reforms, institutional ownership of rental properties and population growth. The paper provides an easily calibrated model of home purchases that could be used to quantify home ownership effects of various tax reforms.
ISSN:0013-0249
1475-4932
DOI:10.1111/1475-4932.12754