stamp duty

Bye, bye stamp duty

PHOTO: The New South Wales government will move to abolish stamp duty and replace it with an annual land tax

The New South Wales government will move to abolish stamp duty and replace it with an annual land tax.

Handing down the state budget on Tuesday, Treasurer Dominic Perrottet said he wanted the current system reformed ‘as soon as possible’.

Under his proposal, which will be consulted on until March, home buyers will be able to chose whether to pay stamp duty or an ongoing annual land tax.

The measure is expected to stimulate the economy by $11billion over the next four years.

Stamp duty is a tax that buyers must pay when they purchase a new home. The amount due depends on the value of the property.

Critics say the tax discourages people from moving house and sucks money out of the economy.

New South Wales will have a record $16 billion budget deficit this year as the government borrows money to stimulate the economy following the coronavirus recession.

Debt will hit a record of $104billion in 2023/2024.

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