Presented by Robert Clark MP		www.robertclark.net

Stamp Duty increases hit Whitehorse homebuyers

News Release - 9th March 2004

Rising house prices in Whitehorse have allowed the Bracks Government to reap big stamp duty increases from local homebuyers.

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

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

"By December last year the price had increased to $460,000, and the stamp duty bill had soared to $23,260.

"This means that in less than three years the stamp duty bill on the typical house in Box Hill has increased by 166.1%."

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

"In Box Hill North, stamp duty on a median priced house has more than doubled, from $8,860 in September 1999 to $19,210 in December last year.

"In Mont Albert, stamp duty on a median priced house has increased from $13,960 to $26,260, an 88.1% 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.

"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 that following recent cuts to stamp duty in Queensland, a first home buyer of an average-priced Melbourne house now pays more than twice the stamp duty they would pay in Brisbane for a house of the same price.

"The Liberal Party is committed to stamp duty relief for home buyers. It is time Mr Bracks and Mr Brumby got the state's finances in order and made the same commitment."

Mr Clark said his figures on local stamp duty increases were based on median house price figures for Melbourne suburbs for September 1999 and December 2003, published by the Real Estate Institute of Victoria.

Table: Median Prices and Stamp Duty levels in Whitehorse