Victoria’s largest source of tax revenue is inefficient, constrains property investment and will need replacing with support from the federal government, an inquiry has been told.
The Legislative Council’s Economy and Infrastructure Committee is examining land transfer duty fees, known as stamp duty, which is tax paid by a purchaser on a property.
Victorian Treasury and Finance secretary David Martine said stamp duty brought in $10.4 billion (US$6.9 billion), slightly more than one-third of Victoria’s state tax revenue for the 2021/22 financial year.
But the tax ultimately constrained individual and investor decisions.
“It may discourage individuals from relocating for opportunities such as a new job, or moving to a property better suited to their needs,” Martine told the inquiry….