The New South Wales government has proposed a shift away from stamp duty in favour of an annual property tax as part of plans to create a more modern tax system.
The plans announced in the 2020-21 NSW budget propose a model that gives buyers the choice of paying either stamp duty and land tax or a new smaller annual property tax in a bid to stabilise state revenue.
The model gives lower rates for owner-occupiers and higher rates for investors and commercial properties.
It will also enable people who opt-in to the system to eliminate any land tax liability while those who have already purchased a property will be unaffected.
“This model may inject more than $11 billion into the NSW economy in the first four years and boost NSW Gross State Product by 1.7 per cent over the long term,” Perrottet said.
“Reform of the inefficient stamp duty system could also create and support thousands of jobs to boost the economy and kick-start our recovery for a prosperous, post-pandemic NSW.”