The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
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
10
print
Print
OtherTaryn ParisMon 13 Jun 22

Phasing Out Stamp Duty to Cost NSW $2.5bn

Two years after pitching it, the New South Wales government is finally moving to overhaul stamp duty in favour of a broad-based land tax.

The move, to be contained in its budget next week, is aimed at tackling the state’s affordability crisis. 

The reform will put a $2.5-billion hole in the budget according to estimate, which is about 20 per cent of the NSW government’s revenue.

The property industry has applauded the tax reform ,which could help grease the wheel for property transactions into the future.

Urban Taskforce chief executive Tom Forrest said the imposte of stamp duty had forced people to stay in homes that did not meet their needs, which had a ripple effect “forcing the prices up” on homes that were on the market. 

“Stamp duty actively works against transactions,” Forrest said.

“Stamp duty is also levied on the purchaser of a new home … it hits those that can least afford to pay due to the massive increase in homes across Australia, but particularly in NSW cities and regions.

“It is a tax on making homes available for sale and it hits those who have already been hit by the government’s failure to address housing supply and the resultant housing affordability crisis.”

Forrest said the time was right to undertake the tax reform after a paradigm shift in the federal government’s position on assisting the states with the resultant cashflow issue and drop in revenue from stamp duty taxes.

“State governments are addicted to the revenue,” Forrest said.

“The financial difficulty for the NSW Premier and his stamp duty reform aspirations was always an initial drop-off in revenue for a number of years while the transition was being worked through.”

Former treasurer and now Premier Dominic Perrotet has proposed a phased-in approach to introducing the reform, which would protect homeowners who have already paid stamp duty, while offering buyers the choice to opt in for an annual land tax option. 

The Australian Capital Territory is the only other state or territory to successfully overhaul stamp duty.

As part of the NSW phased-in approach, the stamp duty would eventually be phased out as land tax would be tied to individual properties into the future. 

There are, however, provisions for retaining 20 per cent of the most expensive properties in NSW as stamp duty properties to help shore up revenue in the short term.

The NSW Cabinet’s expenditure review committee has reportedly approved a reservation of funding for the changes in the Perrotet government’s pre-election budget next week. 

Newly-annointed Federal Treasurer Jim Chalmers has signalled he is willing to work with the states on a collaborative approach to tackling housing affordability.

ResidentialAustraliaReal EstatePolicyPolicy
AUTHOR
Taryn Paris
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The property giant’s strategic shift to higher density is in full flight as details of two landmark projects are made pu…
LATEST
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/phasing-out-stamp-duty-to-cost-nsw-2.5bn