The Property Council of Australia (PCA) is calling for a cut to stamp duty as part of an overhaul of the state tax system.
According to The Australian Financial Review, the call follows reports that state governments were preparing for a property tax shortfall of $2 billion in 2008-09.
PCA chief executive Peter Verwer told the paper that financial pressure on state budgets from the property downturn was no surprise.
“It’s highlighted that state governments have become too addicted to inefficient and volatile property sectors.
“The lesson to be learnt from this is to reduce the dependence by reforming the taxes. The process may take several years... but it’s worth starting sooner rather than later because there will be dividends from tax reform,” Mr Verwer said.
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