Stamp duty costs, which are paid on both the buy and the mortgage amount, are soaring according to the second Residential Stamp Duty narrative from home loan lender Bankwest.
The narrative reveals that over the last five years these levels have increased by 36 per cent in Australia and Victorians are being hit the hardest.
2010 Tax Brackets
Residential stamp duty for buying the typical Australian house is now ,761.
BankWest senior analyst Tim Crawford told the Abc: "Across Victoria as a whole, we've seen a 38 per cent growth in the typical stamp duty bill over five years and the typical bill in Victoria is pushing towards ,000." he said.
"In Melbourne we've seen a 76 per cent growth in the midpoint stamp duty bill over five years."
This translates as Melbourne home buyers having to set aside four and a half months worth of their midpoint household income to pay this tax on a midpoint priced house.
The new Liberal Government in Victoria campaigned on this issue and is currently establishment to cut this tax for first home buyers. Thereby reducing it by around 50 per cent on a midpoint priced house in Melbourne.
Melbourne buyers are the hardest hit of any Australian capital city with the midpoint bill pushing straight through ,000 to ,620.
This is four times the burden of midpoint houses in Brisbane, which enjoys the nation's smallest bill of ,245.
Triggering this growth is the booming Australian asset market, which has delivered yet someone else blow to asset buyers who now have to work an midpoint of two months just to pay this cost, according to the Bankwest research.
Crawford says "bracket creep" is commonly to blame for the increases. He explains that house prices have prolonged to growth but most state and territory governments haven't changed their corresponding thresholds.
Bankwest sell Chief Executive, Vittoria Shortt said the sustained rise was an ever-escalating burden for home buyers.
"There's wee doubt that stamp duty is among the most unpopular duties a home owner encounters and our research shows they are a valuable financial add on to the cost of a property," Shortt said.
"Most homeowners in capital cities now need to set aside or borrow three months of their household income if they want to move house.
"As a result, many citizen may be tempted to stay put and renovate rather than move house because of high stamp duty bills.
"All states offer stamp duty concessions for first time buyers and there have been concessions for new home buyers which also helps. But citizen already in the asset market who are finding to upgrade in their area commonly face higher bills."
On a national average, stamp duty payable on the midpoint house is equivalent to 3.3 per cent of the buy price with Melbourne prominent the way at 5.2 per cent of the buy price for the midpoint house and bottom is Brisbane at 1.6 per cent.
Breakdown by State: (as at September 2010)
Median Stamp Duty Bill: Nsw - ,865 Vic - ,690 Qld - ,985 Sa - ,630 Wa - ,889 Tas - ,730 Act - ,685 Nt - ,430 Australia - ,761
1 Yr % Change: Nsw - 5%, Vic - 16%, Qld - 0%, Sa - 5%, Wa - 0%, Tas - 1%, Act - 15%, Nt - 14%, Australia - 8%
3 Yr % Change: Nsw - 14%, Vic - 27%, Qld - 5%, Sa - 9%, Wa - (-8)%, Tas - 10%, Act - 22%, Nt - 47%, Australia - 14%
5 Yr % Change: Nsw - 20%, Vic - 38%, Qld - 80%, Sa - 57%, Wa - 30%, Tas - 42%, Act - 82%, Nt - 152%, Australia - 36%
Stamp Duty As % Of buy Price: Nsw - 3.6%, Vic - 4.3%, Qld - 1.4%, Sa - 4.0%, Wa - 3.5%, Tas - 3.2%, Act - 4.2%, Nt - 4.0%, Australia - 3.3%
Median House Price: Nsw - 5,000, Vic - 2,000, Qld - 1,000, Sa - 6,000, Wa - 0,500, Tas - 4,500, Act - 8,000, Nt - 487,500, Australia - 1,500
Significant findings
Melbourne home owners need to set aside 4.4 months of their each year household income to pay stamp duty for midpoint priced properties, the top in the nation. Sydney ranks second, at 3.2 months. Brisbane home buyers pay the bottom in this tax, having to set aside one month's salary. The typical home owner in more than half of capital city local government areas (53%) needs to set aside 25% of their each year household income - up from 47% a year ago. Nationally, the typical home owner in 17% of council areas now needs 25% of their household income to pay the payment - up slightly from 16% five years ago. There has been a rise by more than 50% in five capital cities in the past five years - Darwin (137%), Canberra (82%), Brisbane (77%), Melbourne (76%) and Adelaide (60%). Western Australia and Victoria are the only states to have raised their thresholds to match the rise in house prices in the past five years. Queensland has the bottom stamp duty bills as a division of midpoint buy price at 1.4%, whilst Victoria has the top as a proportion of the midpoint price at 4.3%.
total stranger Stamp Duty - How Much Is Your State Charging You?
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