Dominic Perrottet, New South Wales Treasurer (NSW), recently announced a change to the state's stamp duty system, making it the first state or territory in the country to index slices of stamp duty on the consumer price index.
Part of the reform consists of adjusting for inflation the seven ranges of values ​​identifying the amount of stamp duty borne by buyers.
"We have seen no significant action on stamp duty media since 1986, when the median home price in Sydney was $ 100,000, it has now climbed to $ 1 million," he said. perrottet.
He noted that change was the most essential of an entire generation, the current system having remained virtually unchanged for more than 30 years.
"The imposition of stamp duties on the CPI will reduce the tax burden of homebuyers, thus allowing them to pay more money for a deposit."
This news has been welcomed by the Property Council of Australia. The industry group has acknowledged that rate indexing will facilitate the entry of new homebuyers, wholesalers and right-handers into the market, even if the savings will be minimal in the early stages.
Despite the housing market downturn, the issue of housing affordability remains a serious short and long-term problem for the state.
In addition, Jane Fitzgerald, Executive Director of the NSW Property Council, explained why Stamp Duty Change is an important element of NSW's micro-economic reform.
"In 1986, the stamp duty on a median home would have been about $ 1,931, or 1.96% of the real estate price," she said.
"The highest bracket then applied to homes over $ 300,000 has never had an effect on the average buyer, but only on" high-end "homes. Nowadays, in Sydney, it is the exception and not the rule that we avoid the highest rate. "
For reference, stamp duty adds nearly $ 50,000 to the purchase of an average property in Sydney this year.
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