Stamp duty should be lowered for all first home buyers to make it easier for young people to enter the market, property peak bodies argue.
In the lead-up to a Senate inquiry into inequity between generations on Monday, Master Builders Australia has called for hurdles preventing people from buying their first home to be lowered.
In its submission to the inquiry, the association's chief economist Shane Garrett said large stamp duty bills often led home buyers to take out larger mortgages to cover the cost of the tax.
"Stamp duty drains the financial resources of those transitioning from renting to home ownership,'' the submission reads.
"Stamp duty bills erode the home purchase deposits of homebuyers, forcing them to take on mortgages that are both larger and heavier.
