Stamp Duty - The Most Loathed Tax in NSW
Stamp Duty, also known as land transfer tax, is an additional payment on top of the purchase price that a buyer will need to pay. The amount of stamp duty payable is calculated based on the purchase price, meaning the more expensive the property, the higher the stamp duty amount that will need to be paid.
However, it has been announced earlier this month that the dreaded stamp duty may be up for review.
The NSW Treasurer is advocating for abandonment of the stamp duty in the hope that it will assist economic growth post COVID-19, saving homebuyers tens of thousands of dollars on their next property purchase.
Leaders of all States in Australia are discussing whether stamp duty is an efficient revenue stream for propping up the economy post COVID-19.
Mr Perrottet, the NSW Treasurer stated that stamp duty “is a barrier to people entering the property market and changing properties to better suit their circumstances throughout their lives”.
If the final decision is to abolish stamp duty, buyers may find their next property purchase much more favourable upfront. However, whilst purchasers may not have to pay stamp duty, it doesn’t mean that the buyers and landowners won’t wear a cost at all over the years of owning the land.