The NSW government has today announced its 2020-21 budget.
A part of the budget announcement by NSW Treasurer Dominic Perrottet was a proposal to reform the State’s archaic stamp duty regime.
In an effort to make housing more affordable, the Treasurer announced that the government is looking into a model that would allow home buyers the choice of either a one-off stamp duty payment or smaller annual property charges.
Rather than the initial average $34,000 lump sum payment of stamp duty at the time of completing the purchase of a property, buyer’s may choose to instead spread this cost over a number of years.
It is estimated that this scheme could reduce outlays by $20,000 over the first four years of homeownership.
“We have a model that we think works and this is something we will consult on through until March,” Treasurer Dominic Perrottet said of the proposed reform.
The proposal is open for public consultation until 15 March 2021.
Members of the public can have their say on this proposal here.