PHOTO: First-home buyers would benefit with a grant up to $25,000 instead of existing concessions. They can then choose to pay property tax over stamp duty which, on a $750,000 property, would be $29,000 (stock image pictured)
- Stamp duty is tax that buyers must pay when purchasing new home in NSW
- Treasurer Dominic Perrottet wants to replace it with a lower property tax
- Measure is expected to stimulate the economy by $11billion over four years
- First-home buyers could save $54,000 at the time of purchasing property
- Someone buying ‘forever home’ would be better off keeping stamp duty
The NSW government’s ambitious plan to make stamp duty optional is a huge win for first home buyers but may not benefit a family looking for their ‘forever home’.
Under the proposal, which was raised during the state budget announcement on Tuesday, home buyers would have the option to pay stamp duty or an annual ‘property tax’.
Stamp duty is a lump sum paid on purchase but the annual property tax would involve paying a small percentage of the land’s value each year.
The ambitious plan – which will go to public consultation in March and could be introduced in the second half of next year – has been welcomed by economists, real estate experts and the state opposition.
Not everyone would be better off with choosing the property tax. A couple buying their ‘forever home’ for $700,000 would be up for $27,500 more over 20 years. Therefore, would be better off opting for stamp duty over land tax (Stock image pictured)
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