Home builder AV Jennings is calling for stamp duty to be scrapped to help more first home buyers into a booming property market.
The state-imposed tax on property transfers was supposed to be scrapped when the GST was introduced, and must be front and centre in the housing affordability debate, chief executive Peter Summers said.
"We believe that a sensible discussion around a number of points is critical. The issue of stamp duty, a tax that was meant to be eliminated in 2000 with the introduction of GST, is one such debate long overdue," he said as AV Jennings reported an 83 per cent rise in annual profit.
"The company has for many years talked about the impact of government charges and taxes and the cost of red tape causing delays that are impacting affordability."
A federal government tax discussion paper released in March labelled stamp duty as one of Australia's most inefficient taxes, and has been criticised by economists and academics as a barrier to economic growth as it discourages investment.
But stamp duty is also a massive earner for state governments - a major slice of a record $2.5 billion surplus for the NSW government in the current financial year will be driven by the tax.
Mr Summers said the housing debate is also too heavily focused astronomical price rises in inner city Sydney, which is not indicative of what is happening across the country.
But he said improved consumer confidence has helped release a pent-up demand for housing in the past year, which contributed to profit and revenue growth at AV Jennings.
The company made a net profit of $34 million in the year to June 30, as it accelerated projects and lifted home settlements by 23 per cent.
Its shares finished two cents higher at 67 cents.
STRONGER HOUSING MARKETS LIFT AV JENNINGS PROFIT
* Net profit: up 83pct to $34.4m
* Revenue: up 27pct to $317.9m
* Fully franked final dividend: up one cent to three cents a share
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