Making home ownership more achievable in NSW

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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 will not be subject to property tax. There is no double taxation.

Land tax

Land tax places a large tax burden on a small number of taxpayers. If the proposed changes are implemented, property buyers could choose to pay either stamp duty and land tax (where applicable) or an annual property tax.

Benefits

This proposed reform could put money back into the pockets of NSW residents when taking the significant financial step of buying a home.

It could also provide a critical economic boost, not only injecting much-needed stimulus ($11 billion in the first four years) in the current downturn, but also delivering the most significant reform to strengthen our state’s economy and increase our people’s prosperity over the long term.

Thank you for your feedback

Consultation on the proposed property tax reform has closed. The feedback has been reviewed. A Progress Paper summarising the feedback and providing reform updates is available on the nsw.gov.au website. Thank you for your contributions to shaping the future of the NSW property tax system.

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 will not be subject to property tax. There is no double taxation.

Land tax

Land tax places a large tax burden on a small number of taxpayers. If the proposed changes are implemented, property buyers could choose to pay either stamp duty and land tax (where applicable) or an annual property tax.

Benefits

This proposed reform could put money back into the pockets of NSW residents when taking the significant financial step of buying a home.

It could also provide a critical economic boost, not only injecting much-needed stimulus ($11 billion in the first four years) in the current downturn, but also delivering the most significant reform to strengthen our state’s economy and increase our people’s prosperity over the long term.

Thank you for your feedback

Consultation on the proposed property tax reform has closed. The feedback has been reviewed. A Progress Paper summarising the feedback and providing reform updates is available on the nsw.gov.au website. Thank you for your contributions to shaping the future of the NSW property tax system.

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    by Roy,

    Public consultation closed mid-March and feedback has been reviewed. You can download the Progress Paper from the nsw.gov.au website.