Stamp duty penalises home owners that move. This note – the first in a two part series – illustrates its costs on people using new survey data. The second note will econometrically quantify the aggregate impact on people movement. This note shows that:
- A typical stamp duty payment costs around five months of take-home income. This has doubled since the 2000s.
- Survey data show that housing costs are stopping people from moving homes, changing jobs and having children.
- Stamp duty is also preventing people from downsizing, which would free up housing supply.
- Abolishing stamp duty is Australians’ most favoured housing policy for state governments.