On 5 November 2018 the NSW Government announced changes to the state’s stamp duty laws, which will mean the seven stamp duty bands will be indexed in accordance with the Consumer Price Index (CPI).
It is estimated the average saving in tax paid on a property purchase will be $500 by 2021.[1]
This is an overdue and essential change for home buyers in particular, given median house prices have increased by approximately 10% since the last significant change to stamp duty brackets in 1986.[2] NSW Treasurer Dominic Perrottet has labelled the change “the most significant in a generation”, whereas the State Opposition describes the change as “too little, too late” and not enough to ease the challenges faced by home buyers in a market which has skyrocketed.
The lessening of the burden of stamp duty will mean home buyers can put more money towards a deposit, which is crucial in the current lending climate.
The CPI adjustment of stamp duty brackets will apply from July next year.
The content of this article is intended to provide a general guide to the subject matter. Specialist individual advice should be sought about your specific circumstances.
[1] Nour Haydar, Stamp duty overhaul in NSW is little comfort to current homebuyers, Opposition days, ABC News 5 November 2018
[2] Kay Rivera, NSW “Essential” Changes in Stamp Duty, Your Investment Property Magazine 6 Nov 2018
