The NSW State Government is set to make the most significant overhaul to Stamp Duty since the system was implemented in 1986.
“The proposed reforms will reduce an impediment to buying and selling real estate “ says Simon Freemantle, Director at PRD Wagga. “Making it easier for people to achieve their dream of home ownership”.
Under the current system several price brackets are used to calculate stamp duty charges ranging from 1.25% under $30,000 to 5.02% over $3 million.
The proposed changes will see Stamp Duty indexed to the Consumer Price Index, making NSW the first state to do this.
The seven price brackets which determine how much stamp duty is payable will rise, cutting the average amount of Stamp Duty charged per property by around $500 by 2021. Stamp Duty savings are forecast to increase significantly over time.
Significant growth in home prices over the past 15 years has seen bracket creep pushing up the average rate of Stamp Duty payable on property.
Further details relating to the reforms are expected to be released later this month.