In likening the GST to state imposed stamp duty for its impact on the cost of housing for first homebuyers, Labor spokesmen such as Wayne Swan and State Labor Premiers are fundamentally wrong.
To start with, when the GST was introduced the cost of its impact was off set through the introduction of the First Home Owners'; Scheme. There is no corresponding off set for state stamp duty.
In the last financial year just over $1 billion was paid in grants under the First Home Owners'; Scheme.
Furthermore stamp duty applies to the entire cost of a housing package vis both land and the dwelling. This is not the case with the GST.
In addition no GST is payable on the private purchase of an existing dwelling.
When the Federal Government temporarily doubled the First Home Owners'; Scheme grant for new dwellings to $14,000 in March 2001 I asked State Premiers to give stamp duty relief to first homebuyers as their contribution to helping the home construction industry. All of the Premiers rejected my request.
It should finally be remembered that all of the proceeds of the GST go to state governments. Nothing is retained by the Commonwealth from the GST.