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This weekend recorded a $46 million dollar earning for the Victorian Government from home buyers.  According to REIV, the stamp duty bonanza is proof enough that a reform in the state’s tax is imminent as rise in the property process are already giving the Government big earnings every weekend.

This also reflects the prospective home buyers’ sentiments which call for a reduction of the tax slug before the state election in November comes as the recent stamp duty tax is causing an overcharge.

Robert La Rocca of REIV stated that the weekend prior to the AFL Grand Final, traditionally a slow weekend in the state, an estimate of $640 million of properties changed hands with the clearance rate of 72 per cent.  Same time last year showed that this was lower, however prices are still strong with a five-bedroom home in Balwyn, east Melbourne which were auctioned for almost $3.5 million.

Victoria pays the highest stamp duty rates in the country with an estimate of $3.6 billion paid by homebuyers the previous year.  Mr. La Rocca stated that cuts to stamp duty should be made due to the strong property market.

La Rocca further stated that there was a cut in rates four years ago during a rise in the property prices which resulted to stamp duty returns to balloon out.  This should also be done today judging by the performance of the property market.

A resident of Essendon, Brook Summer warned that the extreme stamp duty taxes are scaring away the people to invest overseas or interstate.  One of the popular choices is New Zealand where the taxes are far less.  He also stated that they, the people, seem not be having benefits with the increase of the revenue that the government is getting.

Astrid Wemyss-Smith form Yaraville called on the Brumby Government to study implementing the same scheme to New South Wales.  Homes bought under $600,000 do not pay stamp duty.  Andrew Jinks of Yaraville added that the stamp duty in Victoria, the highest in the country, is putting a lot of pressure on people.