Finance

NSW stamp duty: Budget shows stamp duty could be phased out in property tax reforms

An annual property levy could replace stamp duty for NSW homebuyers under proposed tax changes in the state government’s 2020/21 budget.

Instead of being slugged an average $34,000 in stamp duty at the time of purchasing a property, the impost could be spread over a number of years to help more people enter the market.

“We have a model that we think works and this is something we will consult on through until March,” Treasurer Dominic Perrottet said of the proposed stamp duty reform as he unveiled Tuesday’s budget.

The scheme could reduce outlays by about $20,000 over the first four years of homeownership and would be capped at the rate calculated at the point of purchase.

“Stamp duty is a relic from a bygone era when you picked one career, started a family, bought a home and basically settled in for life,” Perrottet said.

Homebuyers are set to benefit from proposed changes to property stamp duty in the NSW budget. Credit: AAP

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