The Victorian government now charges home buyers around $18,000 in stamp duty when purchasing an average house in
The Democratic Labor Party has always placed a high priority on helping families to buy a home. Indeed, today’s help from the Commonwealth for first home buyers has evolved from earlier schemes initiated by the DLP decades ago.
In assisting a family to buy a home, governments help not only an individual but all members of a family - for life. Home ownership makes families less dependent on governments in the long term. It eliminates the need for the provision of rent assistance for example. By ending the need to pay rent, home ownership also increases resilience to economic downturns. A high rate of home ownership goes some way towards equalising the distribution of wealth. It gives all family members a sense of security and a feeling of sharing in the ownership of the country. This can only be beneficial to the long term health of our society.
Our taxation system gives huge benefits to investors (negative gearing and depreciation) but not to those struggling to buy a family home. The result is that a minority of people now own lots of properties while many families can no longer afford to buy even one.
The state government now depends on collecting huge sums in the form of stamp duty on real estate. This burden is heavy but probably manageable for those who are upgrading accommodation and have very likely benefited from capital appreciation. It is a different matter for those who are struggling to acquire a first home to simply put a secure roof over their children’s heads.