Melbourne buyers are being urged to act before the November 28 election, with a buyers advocate claiming early buyers could save 10 per cent. Madeleine Roberts of MR Advocacy said interstate investors are already looking at cheaper Melbourne properties, and that some homes around $2 million are being discounted by $300,000 to $400,000. Both major parties have pledged to restore Victoria's $300,000 land tax-free threshold for investment properties, though Ms Roberts questioned whether Labor could be trusted.
Business owners in the New England North West are being urged to consult their advisers as federal trust tax reforms could add thousands of dollars to costs. Legislation introduced to parliament would impose a 30 per cent minimum tax on discretionary trusts, a measure first flagged in the May budget. The government argues the trust structure undermines fairness, while business groups say trusts serve legitimate purposes such as asset protection. Assistant Treasurer Daniel Mulino said costs should be in the thousands rather than tens of thousands, with a transition period available.
Research suggests shifting away from stamp duty could ease housing affordability and boost economic activity. The e61 Institute found that stamp duty discourages people from moving and reduces home purchases. The ACT has begun phasing out the tax over 20 years, and its government has abolished it for first home buyers. Researchers from Victoria University found the changes had raised economic activity by about 80 per cent. Experts say a land value tax would be harder to avoid and more predictable for governments.
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Thousands of small and family-run businesses across NSW could be spared extra stamp duty costs under a proposal backed by Business NSW. The Minns Labor Government has committed to stop businesses from paying stamp duty when they move to new federal trust arrangements. The commitment follows federal legislation that would increase taxes on discretionary and family trusts. Business NSW regional director Rod Barnaby said the changes would give business owners greater certainty amid rising costs.
The New South Wales government has promised that businesses using the Excluded Election Trust arrangement will not face state taxes linked to Jim Chalmers' proposed 30 per cent minimum trust tax. NSW Treasurer Daniel Mookhey said he worked with the federal treasurer to give businesses certainty early. Business NSW welcomed the move but said business owners should not have to worry about stamp duty bills. Mr Mookhey also pledged to cut state spending to counter inflation and reduce state debt by more than $10 billion ahead of the March state election.
The Victorian Labor government has pledged to review the state’s Absentee Owner Surcharge and Foreign Purchaser Additional Duty if re-elected in November. Treasurer Colin Brooks said the review would examine how revenue is collected, its impact on foreign investment in construction, and its effect on first-home buyers. The government also plans to exempt developers building affordable housing from the surcharge during construction if they meet certain criteria.
Australia's ageing population is reshaping housing demand, and many downsizers want more than a smaller home. Research from GemLife and REA Group found that low-maintenance living is the top priority, cited by 79% of downsizers, followed by security and proximity to amenities. High transaction costs, including stamp duty, are a major barrier to moving. A one percentage point rise in stamp duty rates reduces housing turnover by about 7%, according to research by the e61 Institute and PropTrack. Providers must also address ongoing fees and community rules.
A 2026 Downsizing Australia report by realestate.com.au and GemLife finds stamp duty is a leading financial worry for people considering moving from large family homes. Drawing on more than 2,100 buyers' responses, 26% of downsizer respondents named stamp duty as holding them back, second only to the hassle of moving at 29%. GemLife's chief executive said land lease communities avoid stamp duty at purchase.
Research suggests financial incentives are keeping many older Australians in their large homes, leaving about 13 million bedrooms empty across the country. Almost nine in ten households aged over 55 have at least one spare bedroom. The Australian Housing and Urban Research Institute says stamp duty, agent fees and loss of age pension benefits discourage downsizing. Independent MP Monique Ryan has called for stamp duty to be replaced with a broad-based land tax.
Victoria's state budget may suffer if Melbourne's property market stays weak, according to economists. Clearance rates have been poor, and about 42 per cent fewer homes were scheduled for auction than last year. Ahead of new auction laws requiring sellers to disclose reserve prices seven days in advance, only 551 homes are set for auction next weekend. REA Group senior economist Anne Flaherty says lower stamp duty revenue next year is almost certain. The state budget is due in May 2027.
