Slashing stamp duty to incentivise older Aussies to sell their properties and free up homes is something the nation’s leading real estate bodies is recommending politicians consider in the lead up to the election.

The Real Estate Institute of Australia (REIA) unveiled seven recommendations for political parties and independent candidates ahead of this year’s federal election to tackle the nation’s housing crisis.

Phasing out stamp duty as well as revising lending criteria and taxes frameworks are some of the proposals from one of the nation’s largest real estate bodies. REIA president Leanne Pilkington said their recommendations came at a time when housing affordability was at its lowest point since 1996.

“The housing crisis in Australia demands urgent and effective action,” she said. “With mortgage repayments consuming a significant portion of household income and rental stress rising, REIA’s strategy aims to address these issues head-on.”

Ms Pilkington said for Aussies aged 65-plus looking to downsize, they were most likely not going to be getting the money they spent on stamp duty back if they sold their current home.

“I’ve had plenty of conversations with people who said the cost of transacting is what’s really stopping them, particularly for that last move,” she said.

“I don’t think there’s any reason why we shouldn’t look at no stamp duty (for their next property purchase) for older Australians who are downsizing.”

REIA would also like to see the Australian Prudential Regulation Authority (APRA) revise its lending criteria to help more first-home buyers enter the property market, and were calling for an inquiry into the impacts of state and territory property tax frameworks.

Ms Pilkington said land taxes and other measures in Victoria caused property investors to flee the market.

This comes as nearly 42 per cent of low-income houses that received Commonwealth Rent Assistance in 2023-2024 were paying more than 30 per cent of their income on rent, placing them in housing stress, the latest Productivity Commission’s Report on Government Services revealed.

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