Dear all, Another thread here saw many lament Stamp Duty being too large, arguing it dissuades people from moving house/buying a house/entering the market-an idea on how to fix this: I'm going to use imaginary prices & stamp duty rates so the concept remains simple. STEP 1: Citizen Jeff buys house to live in in Suburb A for $500,000 Pays $15,000 in Stamp Duty STEP 2: Buys new house to live in in Suburb B for $1,000,000 10 years later $15,000 Stamp Duty from previous purchase is indexed relative to either inflation, median house price or some other measure Citizen Jeff merely pays the difference between what his stamp duty should be for a $1,000,000 house and this indexed stamp duty=i.e. you carry the stamp duty with you Investors pay stamp duty as per normal and are NOT allowed to carry over/index stamp duty from investment purchases. People who downsize (e.g. Citizen Jeff buys a $250,000) pay NO Stamp Duty if their indexed stamp duty is higher than normal stamp duty for said property. A similar ruling/concept to the 6 year Capital Gains Tax rule (i.e. one can only claim a house as a principal residence for Capital Gains purposes up to six years after moving out) is applied to prevent 'rorting' of the system. The measure that is used for the indexing is open for discussion, as is whether it should take into account government adjustments to the normal physical Stamp Duty percentage. Thoughts? I fear I am going to get roasted by MTR for this thread.