The Real Estate Institute of New South Wales believes high rates of Stamp Duty (now known as Transfer Duty) are harming the NSW real estate industry as more and more people are put off entering the property market.
Currently, the local buying population simply don’t have an incentive to purchase property with such high rates of Transfer Duty.
With the property downturn in full swing, why isn’t the NSW Government revising the Transfer Duty brackets?
Despite a softening of the Sydney property market, which has seen the median house price drop to $945,000 (in the 12 months to February), the transfer duty payable on the median house price ($41,000) is unaffordable for most purchasers trying to get into the market.
The total NSW Transfer Duty revenue for the 2018-19 financial year was just over $7.5 billion. Data shows that the number of dutiable transactions in June 2019 was 15,964 which is the lowest number of dutiable transactions in NSW in the past 13 years.
There is empirical evidence clearly showing that reducing the rate of tax will increase transactions. Then everyone wins including the government. This gives the government plenty of capacity to assist home buyers, particularly first home buyers.
Transfer duty calculator
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Property Value
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Transfer duty rate
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$0 to $14,000
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$1.25 for every $100 (the minimum is $10)
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$14,001 to $30,000
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$175 plus $1.50 for every $100 over $14,000
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$30,001 to $81,000
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$415 plus $1.75 for every $100 over $30,000
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$81,001 to $304,000
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$1,307 plus $3.50 for every $100 over $81,000
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$304,001 to $1,013,000
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$9,112 plus $4.50 for every $100 over $304,000
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Over $1,013,000
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$41,017 plus $5.50 for every $100 over $1,013,000
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Transfer Duty in NSW is payable on the following purchases:
- property, including your home or holiday home
- an investment property
- vacant land or a farming property
- commercial or industrial properties, or
- a business, which includes land.
Transfer Duty must also be paid on any land that is acquired without buying it, such as:
- a declaration of trust
- a gift, or
- a transaction effecting a change in the beneficial ownership of a property.
It’s about time the NSW Government came out in support of property buyers and made significant changes to the punitive rates of tax currently imposed on property buyers.
Download the Media Release
About REINSW
The Real Estate Institute of New South Wales (REINSW) is the peak industry body for real estate agents and property professionals in NSW. It represents more than 2000 agencies across residential sales, property management, commercial, strata management, buyers’ agency, agency services and auctioneering. Established in 1910, REINSW works to improve the standards, professionalism and expertise of its members to continually evolve and innovate the industry. It lobbies the government and industry on behalf of members, develops new products and services to benefit agencies and professionals, and offers training and ongoing professional development. For more information, visit reinsw.com.au.