The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 THE UNMISSABLE EVENT FOR PROPERTY PROFESSIONALS IN THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 UNMISSABLE FOR PROPERTY PROFESSIONALS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
120
print
Print
OtherRenee McKeownTue 17 Nov 20

NSW Moves to Phase Out Stamp Duty

6f148ff4-b3e9-4216-b89f-cbd2b8d86f85

The New South Wales government has proposed a shift away from stamp duty in favour of an annual property tax as part of plans to create a more modern tax system.

The plans announced in the 2020-21 NSW budget propose a model that gives buyers the choice of paying either stamp duty and land tax or a new smaller annual property tax in a bid to stabilise state revenue.

The model gives lower rates for owner-occupiers and higher rates for investors and commercial properties.

It will also enable people who opt-in to the system to eliminate any land tax liability while those who have already purchased a property will be unaffected.

The reform could be set in motion in the second half of 2021 following a public consultation process.

The plan leverages the NSW Productivity Commission’s Green Paper and the NSW Review of Federal Financial Relations which suggested several ways to reform the tax system.

NSW treasurer Dominic Perrottet said these changes will improve the state’s economy and help home buyers as stamp duty adds $34,000 to the average home.

“This model may inject more than $11 billion into the NSW economy in the first four years and boost NSW Gross State Product by 1.7 per cent over the long term,” Perrottet said.

“Reform of the inefficient stamp duty system could also create and support thousands of jobs to boost the economy and kick-start our recovery for a prosperous, post-pandemic NSW.”

Urban Development Institute of Australia (NSW) chief executive Steve Mann raised concerns that the plan could see potential homebuyers holding off on their purchase until changes are introduced.

“With commencements in the NSW apartments sector down 35 per cent since December 2018, the government will need to consider stimulatory measures for new construction while this reform is in process, and further incentives which make new builds more competitive in the market.

“UDIA NSW believes this measure, which is initially proposed for owner-occupiers, should be extended to the investor market to stimulate jobs growth in the development sector,” Mann said.

“The number of investors in the property market has halved since the start of 2018.”

Real Estate Institute of NSW chief executive Tim McKibbin added stamp duty reform has been long overdue, however the property industry body does not support replacing one tax with another.

“Stamp duty is an inefficient, inequitable tax that distorts market activity.

“Not only does it discourage people from moving—especially downsizers who would otherwise free up housing stock—it also limits the additional expenditure home buyers could otherwise engage in,” McKibbin said.

ResidentialAustraliaPolicyReal EstateSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
MONARK co-founders Michael Kark (CEO) and Adam Slade-Jacobson (CIO)
Exclusive

Finding the Sweet Spot: How Monark Built its $2bn Property Empire

Leon Della Bosca
6 Min
Exclusive

Sydney’s Fear of Heights Holding Back Housing

Vanessa Croll
6 Min
North Melbourne Craigieburn HB Land EDM
Exclusive

Tribunal Finding Cruels 1000-Home Melbourne Plan

Clare Burnett
5 Min
Roseville Hycorp EDM
Exclusive

Ku-ring-gai TOD Backflip Slashes 1500 Homes from Under-Way Developments

Clare Burnett
7 Min
Exclusive

Housing Fix Sprint Begins with New Top Planner Pushing 13 Regional Plans

Phil Bartsch
8 Min
View All >
Sponsored

Carpet Zones Bring Clarity to Open Layouts

Partner Content
Indroo Verso 53 Coonan Street DA hero
Development

Tower Pitched as Brisbane’s Inner-West Regains Steam

Phil Bartsch
Clarke Hopkins Clarke's rendering of the clubhouse for Levande's Highton seniors living project in Geelong.
Retirement & Aged Care

Seniors Living Plan Revealed for Former Geelong Van Park

Marisa Wikramanayake
A retirement sector heavy-hitter has filed plans for the site near Geelong, proposing 125 homes…
LATEST
Interiors

Carpet Zones Bring Clarity to Open Layouts

Partner Content
4 Min
Indroo Verso 53 Coonan Street DA hero
Development

Tower Pitched as Brisbane’s Inner-West Regains Steam

Phil Bartsch
3 Min
Clarke Hopkins Clarke's rendering of the clubhouse for Levande's Highton seniors living project in Geelong.
Retirement & Aged Care

Seniors Living Plan Revealed for Former Geelong Van Park

Marisa Wikramanayake
2 Min
Labrador Midrise Whiting Street DA hero
Residential

Labrador Scheme Joins Gold Coast Midrise Surge

Phil Bartsch
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/nsw-moves-to-phase-out-stamp-duty