Freedom to move: stamp duty reforms gain momentum
With the economy in need of a rebound due to COVID-19, the state governments of NSW and Victoria have made some big stamp duty announcements in their 2020/21 budgets.
NSW has flagged a complete overhaul of the system with a shift towards a property tax, while Victoria has announced short term discounts.
Below we’ll outline the announcements in NSW and Victoria, as well as the current state of play around the nation.
New South Wales
The NSW state government will open for public consultation a property tax model that it says will make homeownership more achievable.
The consultation will begin with a proposed model that would include giving property purchasers the choice between paying stamp duty upfront or opting to pay an annual property tax.
The Victorian government announced it will be waiving 50% of stamp duty on newly-built and off-the-plan homes valued below $1 million.
Existing homes will also be eligible for a 25% stamp duty discount.
Elsewhere around the country
The ACT has already started phasing out stamp duty and replacing it with a land tax as part of its 20-year tax reform program.
And in Queensland, the Property Council of Australia says it’s time to review property taxes following NSW’s bold move.
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