Stamp duty revenue vulnerable to property price falls as land tax debate reignites

The real estate boom has been a financial bonanza for long term home owners and investors who've been values skyrocket.

It's also been a windfall for state governments which are now reliant on a flow of revenue from stamp duties worth tens of billions of dollars.

So given the reliance on that drip feed, what happens when interest rates rise and those property transfer payments ease off?

John Manning from Moody's Investor Services says a transition to an annual land tax would be a workable solution.

Here's my report from The World Today.

I spoke earlier on ABC NewsRadio.