For years there has been talk about axing stamp duty, and this has only increased with the coronavirus pandemic.

A recent survey by Finder found that two thirds of financial experts believed stamp duty would be axed by the end of 2021.

So what would this mean for home buyers and home owners?

It will make it easier for first home buyers to crack the market, as it will reduce the amount of money they need to save. Stamp duty generally cannot be included in the mortgage, so buyers must first save their deposit, plus tens of thousands more for stamp duty.

It will also make it easier for those people who buy and sell frequently, such as those moving for work.

The downside could be that if more people are able to purchase, demand will increase and therefore so will prices.

It also means that it would most likely be replaced with a land tax, which everyone in Australia would pay. This may be seen as unfair, especially by those that already paid stamp duty and would now be required to pay land tax as well.

It’s a complex issue and one that will take time to navigate and implement. We will be keeping our eyes on the developments with interest.