NSW Labor leader Chris Minns has announced the opposition’s stamp duty policy ahead of the upcoming state election, unveiling plans to scrap the tax for first home buyers (FHBs) purchasing a property valued at up to $800,000.
A concessional stamp duty rate would also be offered to FHBs purchasing a home worth up to $1 million.
According to the opposition, these reforms would improve housing affordability for 95 per cent of FHBs.
Modelling from the Parliamentary Budget Office suggests that under Labor’s proposal, 27,700 FHBs would be exempt from stamp duty, with an additional 18,800 securing a discount.
“The choice for first home buyers at the next election is clear — pay less tax under Labor, or pay a forever tax on the family home under Dominic Perrottet,” Minns said.
“I understand the stress of trying to purchase your first home. I want more singles, couples and families realising this dream.”
The Labor opposition’s announcement comes just months after Premier Perrottet’s First Home Buyer Choice legislation was ratified, which enables FHBs to choose between paying an annual property tax or an upfront stamp duty on their first home.
Specifically, eligible first home buyers who sign a contract of purchase on or after 16 January 2023 if they opt to pay an annual land tax before settlement.
However, Mr Minns has accused the government of imposing a long-term financial burden on FHBs.
“What I will not do is saddle first home buyers with a new, yearly tax bill that increases every year,” he said.
Daniel Mookhey, NSW shadow treasurer said the opposition’s proposal would provide relief amid rising mortgage rates and broader inflationary pressures.
“When we have rising interest rates, rising costs of living, [and] rising electricity prices, the last thing first home buyers need is a forever tax on their homes,” he said.
“This is a sensible proposal that will help almost all first home buyers get a foot into the property market.”