NSW government needs to reform stamp duty brackets

By |

The New South Wales government needs to correct its antiquated stamp duty brackets, according to the Real Estate Institute of New South Wales (REINSW).

Leanne Pilkington, president of the REINSW, said the industry body has continuously lobbied the state government in an effort to persuade them to address the punishing effects of stamp duty bracket creep.

“To date, government has chosen to ignore the damage these outdated tax rates are causing,” Pilkington said. “By doing nothing the government is simply profiteering at the expense of the consumer.

“The current NSW transfer duty brackets (other than the top bracket for residential land over $3 million) have been in place for more than 30 years. The Second Reading to the 1986 Bill, which on enactment increased NSW transfer duty rates and introduced the current base thresholds, included the following statement: ‘The increased rates for conveyances only affect properties worth more than $300,000 and thus will not affect the average home purchaser.’

“The median house price in Sydney is now at $1,179,519 [according to Q4 2017 data from the Real Estate Institute of Australia]. This clearly shows that the government is ignoring the market in which the current stamp duty rates were to apply.  

“Last financial year, more than $7.3 billion was collected in stamp duty and to February 2018 the government has raised in excess of $4.7 billion, on par with the same amount collected in the first 8 months of that financial year.

Pilkington added that there was empirical evidence available that suggests reducing transfer duty will create greater volumes of transactions, which in turn will generate more revenue for the government.

“It is completely disingenuous for government to express sympathy for our first-home buyers and other property consumers and then rip them off with outdated stamp duty rates.

The NSW government needs to search for its conscience and fix these outdated stamp duty brackets.”

Related Stories:

Stamp Duty Concessions Impact Auction Markets

NCAT Cannot Resolve Disputes Between Interstate Parties

Top Suburbs : mt colah , artarmon , coorparoo , flemington , scarborough


Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here