STAMP duty may be one of the least enticing elements of buying a house, often a five-figure sum handed over purely for going through with one of life’s largest purchases.
In an era when affordability is on the precipice for many entering the market, it is not unlikely that some buyers view it as cynical revenue raising on the part of government.
Those will be among those most enthused by NSW Treasurer Dominic Perrottet’s announcement on Monday that stamp duty brackets will begin to rise with inflation for residential property purchases from mid-2019. The Berejiklian government argues the changes will cut the average amount of stamp duty per transaction by about $500 two years later, a saving expected to rise over time. In the context of a mortgage unlikely to be less than hundreds of thousands of dollars, it is perhaps not a game-changing amount. It will cost the state budget about $185 million in three years, but also makes the state Australia’s first to index the brackets. The Property Council of Australia’s regional director for the Hunter, Anita Hugo, said structural change around stamp duty could address long-term housing affordability in the region.
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Source: The Herald