The NSW government is moving to raise stamp duty exemptions in place of the Coalition’s first-time home buyer land tax alternative.
When the legislature reconvenes on Tuesday, the Minns administration intends to introduce the legislation.
If the proposed plan is approved, the threshold for first-time homebuyer stamp duty exemptions will increase from $650,000 to $800,000, and the threshold for stamp duty concessions will increase from $800,000 to $1 million.
Under the previous Perrottet administration, a bill was approved last year allowing first-time property buyers to choose between paying stamp duty or an annual land tax on properties up to $1.5 million.
According to the most recent Revenue NSW data, since the program’s start, about 5000 properties have chosen to participate, helping nearly 8000 first-time homebuyers.
Although the new law will go into effect on July 1st, those who enrolled in the First Home Buyer Choice programme may continue to pay the tax until they sell their home.
I know how stressful trying to buy your first house can be, Minns added.
“I want more lone wolves, married people, and families to realise their dreams.
“Under Labour, any property purchased for less than $800,000 will have absolutely no stamp duty, and any property purchased for up to $1 million will have a reduced rate.”
Prior to the March NSW state election, NSW Labour promised to eliminate stamp duty for nearly all first-time homebuyers in the state.
The NSW Coalition has vowed to fight to preserve the First Home Buyer Choice programme in the past.
In the meanwhile, the Victorian government is considering giving state residents who purchase homes the option of paying annual land taxes rather than a one-time stamp duty.
According to a story in the Age newspaper last week, officials are considering the adjustments as part of efforts to address housing affordability and widen the state’s tax base.
The Andrews administration has committed to investing billions of dollars in new services and infrastructure, but it does not want to rely too much on taxes collected from the real estate industry, particularly the stamp fee, which has received much criticism.
