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Unaffordable Housing Driving Victorian Families To Queensland

 February 24, 2022

By  Chase Edwards

An influx of people are deciding to leave Victoria and their nation topping stamp duty bills, to relocate to the sunshine state. The Stamp Duty Watch report that the Housing Industry Association conducts annually has revealed that homebuyers in Victoria typically pay $40,370 in tax when buying a new property. The HIA believes it is driving families to states with lower taxes, such as Queensland. The typical buyer in Queensland pays just $11,005 on average, meaning the figure is about $30,000 cheaper.

Melbourne families are paying far more, however. The state-wide figure is reduced by more affordable homes in regional areas and first-home buyer stamp duty concessions for those properties under $750,000 and exemptions for homes worth $600,000 or less.

Even NSW’s average home tax bill is $34,907, which is well below the Victorian average despite the median house price in NSW being $125,000 higher than the Victorian median.

Fiona Nield is an executive director for the Victorian HIA. Population data shows Victoria is losing countless skilled builders and tradesmen to other states, and according to Nield this is due to the high stamp duty bill.

 “Queensland has been the biggest beneficiary of this exodus from Melbourne as families moved north, where they’re paying almost $30,000 less in stamp duty, while also paying substantially less for a home,” Ms. Nield said.

“It’s concerning that we are going to lose skilled workers to other states basically for cheaper housing.”

“To make homeownership a reality for more Victorians, we must reduce the amount of money they’re paying into the government coffers and increase the amount they’re able to pay towards the cost of a home.”

The State Revenue Office estimates that there are usually around 200,000 homes transacted around the state each year. The government makes roughly $6 Billion a year in stamp duty from these sales.

Cate Bakos is the President of the Real Estate Buyers Association of Australia. She believes that buyers are looking towards Queensland for the extra sunshine and affordability. The stamp duty factor was only a part of their concerns. Victoria’s astronomical house prices, which are among the nation’s priciest, would have also contributed to the mass migration north.

 “It would be a part of people weighing up the case to move,” Ms. Bakos said. “But I haven’t seen people vote with their feet just for stamp duty.”

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