property tax "Out of control" property taxes are killing the home ownership dream, according to the Real Estate Institute of New South Wales (REINSW).

Declaring property taxes a "critical election issue", the institute has called on Prime Minister Julia Gillard and Opposition Leader Tony Abbott to detail how each will reform unfair tax regimes.

"Australian governments are driving up cost of living pressures and keeping thousands of Australians out of home ownership," says REINSW chief executive officer Tim McKibbin.

"The REINSW has launched its ‘Real Tax Policy’ in the middle of the Federal Election campaign calling for landmark reform of property taxes across Australia.

"In the context of a weakening global economy, it’s vital that whoever wins the election urgently reforms property taxation at a Commonwealth and State level."

The REINSW’s tax policy suggestions include the prohibition of stamp duty on GST, the reduction of transfer duty rates and land tax rates and the retention of negative gearing for property investments.

Story from Australian Property Investor