NSW Prime Minister Dominic Perrottet says his party wants to eliminate the stamp duty on property buyers, but cannot act without the support of the federal government.
Key points:
- Dominic Perrottet says stamp duty is the “worst tax any government can have”
- NSW Labor says people will be worse off with a land tax proposal
- Perrottet will meet with the Prime Minister on Friday
Perrottet has long supported the phasing out of the single government rate in favor of an annual broad-based land tax.
In a government proposal released in June last year, the then treasurer wrote that the measure would boost home ownership, grow the economy and increase NSW residents’ annual incomes by more than 10,000 million dollars “.
“I think the stamp duty is the worst tax any government can have,” Perrottet said this morning.
“It’s a massive impediment to people entering the housing market.”
Dominic Perrottet says states cannot eliminate stamp duty without federal support. (AAP: Jane Dempster)
But NSW shadow treasurer Daniel Mookhey said families would be worse off with the proposed land tax scheme.
“I don’t know where Mr. Perrottet thinks working families could find the money to pay him an annual land tax on his house that will last forever,” he said.
“Our model shows that a typical Sydney family will start paying $ 2,400 each year starting next year if Mr. Perrottet introduces that tax.”
The Prime Minister confirmed that next week’s state budget would include announcements and proposed changes related to housing accessibility, but clarified that no agreement had been reached with the Commonwealth.
“The reality is that state governments cannot end stamp duty without the support of the federal government,” he said.
“This is a time for the federal government and state governments to work together to unlock economic opportunities for people in the future.”
Perrottet will meet with the Prime Minister on Friday.
He said he planned to prioritize discussions on health care reform and labor shortages.
“If they want to push tax reform down the road, that’s all,” he said.
After hitting record highs in January, Sydney home values fell 1.5%, according to CoreLogic data.
While the cost of buying a home in Australia’s largest city remains 22.7 per cent above pre-COVID-19 levels, the fall in value increases each month, driven by rising interest rate.
The average mortgage in NSW is $ 786,035, according to data released by the Australian Bureau of Statistics, while the national average is $ 611,154.
Posted 7 hours, 7 hours ago, Monday, June 13, 2022 at 4:14 AM, updated 7 hours, 7 hours ago, Monday, June 13, 2022 at 4:46 AM