Presented by Robert Clark MP		www.robertclark.net

Whitehorse hit hard by Labor's stamp duty increases

News Release - 21st August 2002

Sky-rocketing house prices in Whitehorse have allowed the Bracks Government to reap stamp duty increases from local homebuyers of more than 162% since it came to power.

The increases have been revealed by an analysis of the latest property price data released by the Member for Box Hill and Shadow Treasurer, Robert Clark.

"When the Bracks Government came to power in 1999, a median house in Box Hill sold for $218,000 and the stamp duty cost $8,740," Mr Clark said.

"By June this year the median price had increased to $455,000, and the stamp duty bill had soared to $22,960.

"This means that in less than three years the stamp duty bill on the typical house in Box Hill has increased by 162.7%."

Mr Clark said that other local suburbs had also suffered big increases.

"In Box Hill North, stamp duty on a median priced house has leapt by more than two thirds, from $8,860 in September 1999 to $15,220 in June this year.

"In Mont Albert, stamp duty on a median priced house has increased from $13,960 to $23,410, a 67.7% increase.

"High stamp duty is a burden not only on the first home buyer, but also on growing families looking to move to a bigger home, and on pensioners and self-funded retirees seeking to move into a unit or smaller house.

"It is also a burden on jobs and investment, because it adds to the costs of setting up a business in Victoria, or expanding to larger premises."

Mr Clark said that in each year since coming to office, the Bracks Government had received massive windfall gains due to stamp duty revenue exceeding budget estimates.

"With property prices continuing to rise, the Bracks Government looks on track to receive more windfall gains this financial year.

"However, these windfalls are not being spent on improved government services, but to fill the black holes in the budget caused by bungles and blowouts such as the $60 million lost on Seal Rocks, the $470 million of cost overrun on the regional fast rail services, and the more than $60 million wasted on the ambulance Royal Commission.

"Of the more than $1.5 billion in unbudgeted tax and other revenue windfalls received by the Bracks Government last financial year, more than $1.2 billion was used to cover unbudgeted increases in spending and expenses.

"The Government has tried to claim its increased revenue is due to higher economic activity, but the figures show that since September 1999 across Melbourne the stamp duty payable on the purchase of a typical house has risen by 61.3%. Stamp duty on a median priced Melbourne house now stands at $15,310.

"The Government is simply relying on bracket creep - or more accurately bracket gallop - as price increases push properties into higher and higher stamp duty rates.

"The Bracks Government has made no reductions at all in stamp duty rates since coming to office, and has consistently said it has no intention of doing so."

Mr Clark said his figures on local stamp duty increases were based on median house price figures for Melbourne suburbs for September 1999 and June 2002, published by the Real Estate Institute of Victoria

Table: Median Prices and Stamp Duty levels in Whitehorse