Homeowners will be able to forgo paying stamp duty on their first and second homes under the Perrottet government’s promises to expand the tax reforms if it wins the next state election.
Under the plan, home buyers will be able to eschew paying a lump sum stamp duty on their first and second homes, instead paying an annual tax calculated from the land value of their property.
“Stamp duty is a terrible tax,” NSW Premier Dominic Perrottet told reporters on Sunday.
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“It prohibits and stops many people across NSW getting the keys to the great Australian dream.”
First-home buyers are already eligible to choose to pay either an annual land tax or a larger, one-off stamp duty when buying a house under $1.5 million, after Mr Perrottet passed key legislation last year.
Under the proposed expansion of the scheme, homeowners would also be able to skip stamp duty payments on their second property, instead paying the yearly land tax.
Stamp duty would only be imposed when a buyer picked up their third property.
The cap of $1.5 million for those wanting to opt-in to land tax will also be raised by $50,000 every year from 2023-24.
Labor’s treasury spokesman Daniel Mookhey accused the premier of conducting an ideological experiment on first home buyers as interest rates and the cost of living surged.
“It’s clear that under Dominic Perrottet, his forever tax will now follow you around forever,” Mr Mookhey told reporters.
“Under this proposal, the tax follows the person. As they change their properties, the tax comes along with them.”
The premier has long eyed reform of stamp duty, and in 2020, while treasurer, proposed entirely phasing it out in favour of a replacement land tax.
He has since softened his approach, saying he supports reforms that give home buyers a choice.
“By giving people choice they can tailor their decisions to their own family circumstances,” the premier said on Sunday.
But Mr Mookhey said Mr Perrottet had a record of campaigning for a broad-based introduction of land taxes.
“It’s no secret that Dominic Perrottet wants to go further,” Mr Mookhey said.
“He’s refused to rule out extending this land tax beyond first home buyers.”
Labor’s policy proposes a stamp duty concession for first-home buyers buying property up to $800,000 and offering a discount rate for homes up to $1 million.
Labor proposes Sydney transport upgrades
Meanwhile, NSW Labor has committed $195 million to new planning work for Sydney’s Metro network to create a circular transport link from western Sydney city centres to the new Western Sydney Airport.
The plan will include $195 million in co-funding from the commonwealth, to expand an existing business case for Metro Western Sydney Airport to Leppington and Glenfield line to include an extension through to Bradfield and Macarthur in the southwest.
The party also plans to invest $40 million in state government funds to extend the Western Sydney Airport line from St Mary’s in the west to Tallawong in the northwest.
Expanding public transport in western Sydney is a key plank of the party’s policy agenda, as it says transport services are unfairly divvied up across the city.
The party also said it would invest $3.3 million in world-leading natural disaster detection technology, after an independent inquiry warned current disaster systems are not up to scratch.
On Sunday, the Liberal Party announced lawyer Craig Chung would contest the south Sydney seat of Kogarah, currently held by the Labor leader, and held on a margin of just 0.1 per cent.
While his endorsement from the Liberal Party came less than four weeks out from polling day, Mr Chung told reporters on Sunday his campaign would hit the ground running.
“We’re ready to take this fight up to the opposition leader.”
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