Calls for stamp duty reform are gaining momentum, with the Real Estate Institute of Australia (REIA) advocating for its removal—particularly for older Australians looking to downsize.

REIA President Leanne Pilkington highlights that stamp duty significantly increases transaction costs, discouraging homeowners from moving and restricting housing availability for growing families.

She believes transitioning from stamp duty to a land tax could be one of the most significant real estate policy reforms. However, she acknowledges that most state governments remain hesitant to implement such a change.

“While the economic benefits are clear, many state governments are reluctant to make such a major shift,” Pilkington says.

She emphasises that stamp duty represents a significant financial burden for buyers.

“You’re looking at tens of thousands of dollars in tax every time you move,” she says.

“As a result, homeowners remain in properties that no longer suit their needs, while younger families and prospective buyers face significant financial barriers to upgrading or entering the market.”

In a recent policy shift, Queensland has removed stamp duty for first-home buyers purchasing newly built homes, marking a step toward easing affordability pressures.