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Defying the ‘resident galah’: Pallas won’t ruffle feathers on tax reform

The Victorian government fears “major trauma” would hit the community if it replaced stamp duty with a tax on the family home in any post COVID-19 reform of the state’s revenue base.

Treasurer Tim Pallas compared the proposed reform – which is popular with economists but has been pursued in Australia by the ACT only – to a Mills & Boon romance novel.

Tim Pallas says stamp duty reform would be no love affair for Victorian home owners.

Tim Pallas says stamp duty reform would be no love affair for Victorian home owners.Credit:Luis Enrique Ascui

There has been widespread speculation that Victoria wants to fall in line with NSW, which is keen to scrap stamp duty and replace the transaction charge, which it says inhibits economic growth, with a broad-based property tax.

But Mr Pallas told a parliamentary committee on Wednesday that he saw practical difficulties in introducing a tax on the family home to replace a revenue stream that was projected, before the COVID-19 pandemic struck, to raise $6 million this year.

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