Stamp duty is set to be abolished in what could be a major boost to the property market.
A conference held by the Henry tax review last week saw international and Australian tax economists call for the abolition of stamp duty, The Australian reported today.
While the review acknowledged stamp duty was an easy tax to collect, it said it lead to poor use of housing stock, discourages transactions and is subject to fluctuations in the property market.
Instead of stamp duty, it has been suggested the Commonwealth give states the ability to impose their own surcharge on income tax, as recommended by the Organisation for Economic Cooperation and Development (OECD).
An outcome is unlikely before Christmas however, with the Henry tax review final report scheduled for release at the end of the year.
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