Will Victoria, Australia legislate to replace Stamp Duty (property sales tax) with a land value tax before 2027?
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Resolves YES if the Victorian government passes legislative changes prior to 2027, which have the effect of replacing stamp duty with a land value tax for the majority of residential property buyers.
- The changes need not go into effect before 2027, they need only be legislated, and can include a gradual phasing in or grandfathering in of existing owners, as long as the legislation makes the majority of subsequent property sales at some point in the future subject to land tax rather than stamp duty.
- This includes if buyers have the option to choose land tax over stamp duty, in which case this market will remain open until the change comes into effect and there is data to establish whether the majority of buyers choose that option over a period of a year.
- The land tax can be of any level, as long as it is an ongoing tax based on the value of the land (not the property as a whole).
- As of early 2023, the Victorian Legislative Council (upper house of parliament) has voted to establish an inquiry into alternatives to Stamp Duty:
- https://www.theage.com.au/politics/victoria/stamp-duty-inquiry-to-weigh-up-victoria-s-worst-tax-20230222-p5cmor.html
