From July 2019, NSW will be the first state to index stamp duty brackets to the consumer price index, seeing buyers save around $500 on average property transactions set to increase over time.
Stamp duty brackets haven't been reviewed for more than 30 years. In 1986 median dwelling prices were $100,000, in 2018, they are 1000 times higher. Over the past 15 years, stamp duty rates have increased from 3.37 per cent to 4.05 per cent.
NSW executive director of the Property Council of Australia, Jane Fitzgerald, said changes were an “important piece of economic reform”. “The indexation of rates will give buyers modest savings initially but will, over time, ensure no repeat of the current situation where stamp duty is a barrier for first-home buyers, upsizers and rightsizers,’’ she said. “Structural change to stamp duty is a great long-term investment in providing more affordable housing for NSW.”
Whilst the housing community have commented that the reforms are welcome, it is only the first step towards a long-term solution to housing affordability.
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