The NSW government has detailed plans to phase out stamp duty, as part of a proposed overhaul which could inject as much as $11 billion into the economy over four years.
Announced as part of the NSW 2020/21 budget measures, the changes would give home buyers the choice between paying stamp duty or the significantly lower annual property tax.
NSW Treasurer Dominic Perrottet did not mince words in a speech announcing the changes, calling stamp duty “a relic from a bygone era” that is largely incompatible with a more modern tax system.
“It is holding our economy back at a time we need to be going full throttle,” he told parliament earlier today.
“That’s why we believe that reform is the best way forward. Our proposal would give more people the opportunity to own their own home, and more freedom to live in the home that’s right for them.”
If the plan is implemented, the current stamp duty concessions available to first home buyers would also be scrapped in favour of a $25,000 grant, which can go towards refurbishing the property.
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“The model proposed could bring tens of thousands of dollars of relief to the average home buyer and turbocharge economic growth,” said Perrottet.
“This model would give NSW a realistic pathway to achieving the most important state economic reform of the last half century. Over time it could generate 75,000 new jobs and add an extra $3,300 of income for every household in NSW.”
The NSW government has announced other stimulus measures, including giving all adults in NSW $100 worth of digital vouchers in a bid to encourage spending at restaurants, cafes and entertainment venues.
For information about the assistance available to households, along with tips to keep your finances in good health amid the current crisis, browse our guide to coronavirus and your finances.
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