It is time for the state government to take action against outdated stamp duty rates created by bracket creep, according to the Real Estate Institute of New South Wales.
REINSW President Malcolm Gunning said the level of taxation on homes in NSW is being unjustly affected by the failure to recognise increasing prices and archaic stamp duty rates.
“Bracket creep is a major issue in NSW. Due to increases in property prices, home ownership is being taxed at levels higher than they were ever intended,” Mr Gunning said.
Homeowners were hit by an average stamp duty amount of $33,490 in December 2014. There were 20,185 homes sold with $675,998,863 collected in stamp duty. This compares to 19,665 residential properties purchased in December 2013 with $604,166,430 collected at an average of $30,723 per property.
“The current two lowest stamp duty thresholds in NSW have been in place for 40 years, and the other thresholds, apart from the premium property duty*, have been in place since 18 December 1986, some 28 years.
“Stamp duty was never designed to slug the average property owner at such high levels. It is time for the nonsense to stop. It is time for stamp duty rates to reflect the increases in the housing prices and it is time to give first home buyers a fair go.
“Given that housing is the single biggest financial investment most of us face in our life, it is important that the Premier give a clear indication of how his government is going to address this issue so that NSW voters can make an informed decision at the March election,” he said.
For further information or to arrange an interview with REINSW President Malcolm Gunning, contact Helen Hull at [email protected] or 0419 642 961.
* Premium property duty of $150,490 plus 7 per cent is payable for every $100 in excess of $3 million for residential properties.