[PODCAST] Stamp Duty is Holding Australia Back: Dr. Nicola Powell on Why We Need Bold Reform

Australia’s housing market is under pressure from many directions, but one of the most overlooked barriers is stamp duty.

Once a relatively modest transaction cost, stamp duty has ballooned into one of the biggest financial hurdles for homebuyers.

Just to give you an idea – in Sydney, stamp duty on a median-priced house has gone from around 45% of a household’s disposable income in 2000 to 120% today.  

And it’s not just buyers who are suffering.

Stamp duty distorts housing decisions, locks people into homes that no longer suit them, and acts as a handbrake on productivity. 

Today, I'm joined by Dr Nicola Powell, Chief of Research and Economics at Domain, whose recent report makes a compelling case for replacing stamp duty with a fairer, broad-based land tax. 

Whether you're a property investor, a home buyer, or just somebody who's interested in the housing markets, I'm sure today's chat with Dr Nicola Powell will give you a new perspective as I also want to discuss their latest report on who has profited from property over the last few years. 

Takeaways

• A growth mindset is essential for success in property investment. 

• Stamp duty presents significant financial barriers for home buyers and investors. 

• The burden of stamp duty has increased over time, affecting housing mobility. 

• Capital gains tax on family homes could discourage movement and exacerbate housing issues. 

• Stamp duty is economically inefficient, costing more in lost activity than it raises. 

• Housing misallocation is a significant issue in Australia, with many living in homes that exceed their needs. 

• Consumer confidence is a key driver of property market trends and price growth. 

• Longer holding periods for properties generally lead to greater capital gains. 

• Location plays a crucial role in property investment success. 

• Reform of stamp duty is necessary for improving housing mobility and economic productivity. 

Links and Resources: 

 Answer this week’s trivia question here- www.PropertyTrivia.com.au  

• Win a hard copy of Michael Yardney's Guide to Investing Successfully. 

 Everyone wins a copy of a fully updated property report – What’s ahead for property for 2026 and beyond. 

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Michael Yardney – Subscribe to my Property Update newsletter here  

Dr Nicola Powell, Chief of Research and Economics at Domain   

Domain’s property profit and loss report 

Domain’s Stamp Duty suggestions:  

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