Leading up to the State Budget, REINSW has urged the NSW Government to follow in the steps of the Australian Capital Territory, which reduced stamp duty rates and introduced incentives for over 60s.
REINSW President Malcolm Gunning said the initiatives that ACT Treasurer Andrew Barr announced in early June is a win-win for everyone, as it provides support to all levels of the market.
“We applaud this decision by the ACT and believe that NSW should follow its lead. Stamp duty rates in NSW have not been reviewed for more than 40 years, which means that the average home is being taxed well beyond what Parliament initially intended,” Mr Gunning said.
“Although the ACT still imposes higher rate of stamp duty than NSW on residential properties valued between $800,000 and $3 million, average homes are below $800,000 which means the lower rates in the ACT are fairer than in NSW.
“ACT Treasurer Andrew Barr also announced the thresholds for the Pensioner Duty Concession Scheme have increased and the introduction of an over 60s Home Bonus Scheme designed to assist eligible non-pensioners to move to accommodation more suited to their needs (e.g. from a house to a townhouse) by reducing the conveyance duty payable.
This is not the first time the ACT has made cuts to taxes. In 2012, the ACT also cut the top rates of stamp duty by 0.75 per cent and it had reaped almost $28 million additional transfer duty in June 2013.
From 4 June 2014, the Home Bonus Scheme is available to eligible applicants aged 60 years and over where the purchased property is below the determined upper threshold.
“These incentives for older Australians will help with the current shortage of accommodation and housing affordability,” Mr Gunning said.
The NSW Budget will be announced at midday today (17 June 2014).