Addressing Stamp Duty Bracket Creep to boost housing affordability

Housing affordability is a critical issue affecting NSW, and REINSW is committed to advocating for meaningful change. We’ve recently lodged a submission to the NSW Government, addressing the significant impact of stamp duty bracket creep on property sales, investment, and overall affordability

Impact of Stamp Duty Bracket Creep

Stamp duty brackets have not been adequately adjusted to keep pace with property price increases in NSW, leading to higher tax burdens on buyers. As a result, even median-priced properties are taxed at higher rates, making homeownership less affordable.

Challenges posed by the current stamp duty framework

High upfront stamp duty costs impede homeownership by delaying or preventing purchases, which in turn exacerbates the strain on the rental market. Additionally, stamp duty discourages property sales, limiting market mobility and reducing opportunities for downsizing, relocation, and optimal use of housing stock. The burden of these costs also deters property investors, further contributing to the decline in rental supply and intensifying the ongoing housing crisis.

Our recommendations to Government for consideration include:

• Stamp duty exemptions or reductions  to encourage property investment and support the housing market.
• Extending the first home buyer’s grant  to investors as well as owner-occupiers, boosting rental supply in areas that need it most

By adopting these measures, we believe the government can take a vital step towards alleviating the housing crisis and increasing much-needed rental stock.

Potential benefits of adjusting stamp duty

Reducing stamp duty would stimulate property transactions, driving higher volumes in the market and increasing government revenue, while also addressing housing affordability challenges. Additionally, incentivising rental investments could enhance housing supply, helping to stabilise rental costs for NSW tenants and ease the pressure on the rental market.

For a comprehensive overview of our recommendations to Government, we encourage you to  read the full submission in the submissions section on the submissions page.

Should you have any questions about these proposals or stamp duty bracket creep, feel free to reach out to the REINSW Helpline on  (02) 9264 2343  or email  [email protected] .