The NSW Government has revealed its 2020-21 budget, with the scrapping of the controversial stamp duty amongst the changes discussed.
The state’s deficit is projected to reach an astronomical $16 billion in the financial year 2020-21, with this year’s droughts, bushfires and COVID-19 causing devastation to the NSW economy.
The state government has now asked residents for their thoughts on the changes to stamp duty that would see the much-disputed tariff replaced by a property tax.
The Real Estate Institute of Australia (REIA) responded to the possible ditching of stamp duty by saying that the changes had been a long time coming.
REIA President, Mr Adrian Kelly, said: “REIA and all of our members have been calling on stamp duty reform for years.”
“The payment of large amounts of stamp duty affects property customer’s decisions regardless of what phase of life they are in,” he said.
Stamp duty removal is particularly imperative for first home buyers as well as empty nesters and downsizers.Real Estate Institue of Australia President – Adrian Kelly
The proposed changes would give home buyers the choice of paying a large sum up front, or instead opt for an annual fixed amount in property tax.
“Stamp reform duty, while a major exercise, would have outstanding ‘knock on’ benefits to the economy and help Australians into the right housing solution for whatever stage they are in their life,” said Mr Kelly.
It’s time for Australia’s Treasurers to get serious about getting rid of stamp duty.Real Estate Institue of Australia President – Adrian Kelly