The most hopeful homebuyers in NSW will have stamp fees abolished under a new Labor proposal.
The $772 million scheme is an expansion of an existing government program that offers full or partial rebates on new or existing properties for first-time homebuyers.
Opposition leader Chris Minns said he wanted more singles, couples and families to realize their dream of owning a home.
“I understand the stress of trying to buy your first home,” he said.
The existing government program waives stamp duty on new homes valued up to $800,000 and existing homes valued up to $650,000.
Labor wants to raise the value limit so that any property purchased, new or existing, worth up to $800,000 is free of stamp duty.
The most hopeful homebuyers in NSW will have stamp fees abolished under a new Labor proposal (pictured an auctioneer in Sydney in May 2021)
The new scheme is an expansion of an existing government program that offers full or partial rebates on new or existing properties for first-time homebuyers (an auction in Melbourne pictured).
The Parliamentary Budget Office model estimates that more than 46,000 people could access full or partial exemptions under the expanded scheme.
Within the first three years of the new scheme, 127,000 first-time homebuyers in NSW would not have to pay stamp duty costs.
An additional 18,800 people would have paid a discounted rate.
Currently, an estimated 30,000 to 46,000 people are getting relief under the existing program.
The policy will be funded by dropping the land tax option available to first-time homebuyers purchasing a property for less than $1.5 million.
Buyers pay an annual tax of $400 and a property tax of 0.3 percent on the value of the land.
The laws, which were passed in November but won’t be enforceable until January 16, help buyers save on immediate costs.
The policy will be funded by dropping the land tax option available to first-time homebuyers purchasing a property for less than $1.5 million. Buyers pay a $400 annual tax and a 0.3 percent property tax on land value (file image)
Labor wants to raise the stamp duty value limit, so any property bought, new or existing, worth up to $800,000 will be fee-free (pictured, a Melbourne auction
Prime Minister Dominic Perrottet has been pursuing an ambitious reform to make first-time homes more affordable.
In 2020, as treasurer, he proposed to eliminate the stamp duty entirely and replace it with an annual property tax, but faced some pushback.
Critics of schemes similar to those of the government or Labor say they will lead to higher property prices, further inflating the market that young aspiring homeowners have to get out of.
Labor has vowed to abolish the land tax policy if they win the New South Wales state election in March, and stamp duty will become one of the key issues at the polls.
