By Tim McKibbin, REINSW CEO
The NSW Government recently announced its intention to index stamp duty to the Consumer Price Index (CPI) from July 1, 2019. Indexing the stamp duty brackets is a positive move, however applying it to brackets that are 32 years old – then seeking the community’s gratitude – is insulting.
If Government is serious about tax reform then the indexation needs to start from the commencement date of the current brackets – 1986.
If the Government reduced the rates of stamp duty it would drive more transactions and more tax revenue.
Interestingly, if the CPI was applied to update the tax brackets, the stamp duty payable on the median house price of $985,000 would be $16,325, instead of $39,770. A significant saving for homebuyers.