NSW Government launches public consultation to abolish Stamp Duty on property purchases
The NSW Government has announced in its recent State Budget a property tax model it says will make home ownership more achievable.
The proposal would provide home buyers with the option of paying either a large lump sum up front (similar to the current stamp duty payable on property purchases) or, as an alternative, an annual property tax of a much lower amount, but payable over a number of years. The property tax would be based on a fixed amount plus a rate applied to the land value of the property, in a similar way to Council rates. If an owner chose to pay the yearly property tax, that property would be subject to the same tax for subsequent owners.
The proposal also includes lower rates for the property tax for owner-occupiers, and a higher rate for investment properties.
The proposal also includes a grant of up to $25,000 to first home owners, which could be used to pay the tax, or for home refurbishment. Currently, first home buyers also have stamp duty concessions for properties valued up to $800,000.
The Government will seek community consultation until March 2021, and has indicated that it wants the stamp duty system overhauled “as soon as possible”. No date has been set for legislating the changes.
24 November 2020