The NSW Government wants to help the people of NSW achieve the Australian dream of home ownership and grow the NSW economy.
To help make this happen, the Government is considering a once in a generation change of giving home buyers the choice to pay either stamp duty and land tax (where applicable) or a new smaller annual property tax.
Changes to stamp duty
Stamp duty is one of the biggest financial barriers to home ownership.
If implemented, the proposed changes could give you the freedom to choose between paying stamp duty upfront or paying a much smaller annual property tax, when you buy your next home.
Removing the upfront cost of stamp duty could remove tens of thousands of dollars from the home purchase process and make it easier for first home buyers, families looking to upgrade and others looking to change their property to save what is needed to purchase their next home.
Unless you are buying a property, there would be no change. If you have already paid stamp duty on your existing property, you would not be subject to an annual property tax. There would be no double taxation.
Land tax places a large tax burden on a small number of taxpayers. If implemented, these proposed changes could give property buyers the freedom to choose either to pay stamp duty and land tax (where applicable) or to pay an annual property tax.
This proposed change could put money back into the pockets of NSW residents when taking the significant financial step of buying a home.
The proposed changes could provide a critical economic boost at the time we need it the most, injecting $11 billion over four years into the economy providing much needed stimulus in the current downturn.
It could deliver the most significant economic reform available right now to strengthen our state’s economy and increase our prosperity over the long term.
Consultation on proposed changes to property tax has closed. The feedback is being reviewed and a report that summarises the feedback will be available shortly.
During consultation, thousands of people across NSW provided their valuable insights about the proposal and what it could mean for those wanting to access the housing market. Consultation activities included surveys and polls on the dedicated Have Your Say website, community discussion groups, submissions via the mailbox and an online survey to ensure a comprehensive and holistic understanding of the views of the NSW community. The Government is considering all feedback received throughout the consultation period to help refine the proposal to ensure that it delivers the most benefit for the people of NSW.
The NSW Government wants to thank all who contributed to shaping the future of the NSW property tax system.