NSW Labor to scrap stamp duty for first homebuyers paying up to $800,000 if elected
First homebuyers in NSW could save tens of thousands of dollars off the cost of their home purchase if Labor is elected to government thanks to a new stamp duty policy launched by the state opposition on Monday.
NSW Labor leader Chris Minns said more than 46,000 future homeowners would benefit from paying no stamp duty or a discounted rate under a plan to ditch the duty altogether for first-time buyers purchasing a home worth up to $800,000 and charge a lower rate for those purchasing a home up to $1m.
First homebuyers could save thousands on stamp duty if Labor is elected to government. Picture: David Swift.
It comes in contrast to stamp duty changes introduced by the state government, which allow first homebuyers to opt out of the one off tax, often billed in the tens of thousands of dollars, in favour of a smaller, annual land tax over the life of their ownership.
Independent modelling by the Parliamentary Budget Office indicates about 27,700 first homebuyers would pay no stamp duty while an additional 18,800 first homebuyers would pay a discounted rate within the first three years of Labor’s changes.
NSW Leader of the Opposition Chris Minns has ruled out an annual land tax if Labor is elected. Picture: Tim Hunter.
The scheme applies to both new and existing homes at a cost of $722 million over three years and will not include an annual tax as a replacement for stamp duty.
It doesn’t apply to vacant land.
Under the current scheme, stamp duty on an existing property worth $800,000 is about $31,000.
The proposed scheme doesn’t apply to land. Picture: Jake Nowakowski.
From January 16, first homebuyers purchasing a new property worth up to $1.5m or land worth up to $800,000 can elect to pay an annual land tax of $400 plus 0.3 per cent of the property’s land value instead of a one off payment of stamp duty.
Home buyers purchasing an existing property are not eligible for the scheme.
Premier Dominic Perrottet. Picture: NCA NewsWire / Damian Shaw.
State opposition leader Chris Minns said he wanted more singles, couples and families to be in a position to purchase a home.
“ABS [Australian Bureau of Statistics] numbers indicate the number of first-home buyers approved for a home loan has halved since the peak in December 2020,” he said.
“We have acute housing stress for many young people to get into the housing market.
“What I will not do is saddle first home buyers with a new, yearly tax bill that increases every year … The choice for first home buyers at the next election is clear.”
By Kate McIntyre
Originally published by The Daily Telegraph
