NSW To Index Stamp Duty

The NSW Government says it is making the “most significant reform in a generation” to its stamp duty regime by indexing the tax to inflation. From July 2019, the seven stamp duty tax brackets will move in line with the consumer price index, saving an average property buyer $500 to begin with.

That benefit will increase over time, it says. But it won’t make much of a dent in the overall impost. A person buying an $800,000 house in Sydney currently pays $31,490 in stamp duty to the State Government.

Treasurer Dominic Perrottet says the current system has remained largely unchanged for more than 30 years. “We haven’t seen any significant action on stamp duty brackets since 1986 when the median house price in Sydney was $100,000, now it has climbed to $1 million,” he says.

“Whether you’re a first-home buyer, a downsizer or upgrading to the family home you will ultimately benefit as a result of this reform. Pegging stamp duty to CPI will reduce the tax burden on home- buyers, allowing them to put more money towards a deposit.”