The Berejiklian Government’s overhaul on stamp duty is being been labelled “too little, too late” by the State Opposition, who says it will provide meagre relief for potential homebuyers.
- The stamp duty reforms will amount to an average of $500 savings by 2021
- The NSW Treasurer said the savings would increase to thousands of dollars over time
- Critics say the changes are insignificant in light of the tens of thousands of dollars in stamp duty being paid
This morning, the NSW Government announced it will peg stamp duty to the rate of inflation — a move the Berejiklian government says will offer a “fairer deal” for future homebuyers.
From July next year, the seven price brackets that determine how much stamp duty homebuyers pay will be adjusted to the Consumer Price Index (CPI).
The Goverment said the reforms will slash the average amount of stamp duty on property purchases by $500 by 2021.
NSW Treasurer Dominic Perrottet labelled the changes “the most significant in a generation” but conceded they will only amount to “moderate” savings.
“The savings are modest in the short term, but over time they will grow to thousands,” he said.
“We haven’t seen any significant action on stamp duty brackets since 1986 when the median house price in Sydney was $100,000, now it has climbed to $1 million.”
“Whether you are a first homebuyer, a downsizer or upgrading to the family home, you will ultimately benefit as a result of this reform.”
NSW shadow treasurer Ryan Park criticised the announcement as coming “too little, too late” and said the move does not help homebuyers currently trying to break into the property market.
“There are mums and dads and young people who are paying $40,000 or $50,000 in stamp duty,” Mr Park said.
“This is a treasurer who wants a wild applause for a potential saving of $500.
The NSW Government said the changes are the “most significant in a generation”. (AAP: David Moir)
“The reality is this government had not done enough to increase supply and to make sure that first-home buyers get priority over long-term investors.”
Over the past 15 years, the average rate of stamp duty payable has increased from 3.37 per cent to 4.05 per cent due to “bracket creep”.
Meanwhile, the median house price in Sydney has skyrocketed from around $400,000 to $1 million.
Mr Perrottet said if stamp duty brackets had been indexed to CPI 15 years ago, the amount payable on a $500,000 home would today be around $2,000, while the stamp duty levied on a $1.5 million home would be around $6,400 lower.
Greens MP Justin Field said the Government is “fiddling around the edges” when it should be looking at capping rent increases to CPI and implementing a broad-based land tax system.
“These changes make a mockery of the challenges faced by home purchasers and renters in Sydney,” Mr Field said
“It does nothing to address the housing affordability issues in NSW.”
Mr Field said the State Government failed to invest stamp duty revenues into public housing schemes or addressing the growing homelessness rate in NSW.