Government's failure to correct stamp duty is unconscionable: REINSW

EXPERT OBSERVATION

Stamp duty has remained unchanged in NSW for 32 years despite median house prices rising by 1181%.

When the current NSW Transfer Duty brackets were put into place in 1986 the median dwelling price, according to statistics from CoreLogic, was $80,675 compared to the current median house price of $1,033,892.

The government’s unwillingness to act on this is outrageous.

The numbers speak for themselves.

Median unit prices have also seen a similar increase with a rise of 841.80% from $80,331 to $756,557.

Consumers should be angry about this huge injustice and the government needs to start listening.

A full review must be undertaken and it must be undertaken now.

It was time for the NSW government to correct the punishing effects of Stamp Duty bracket creep. 

However, to date, Government has chosen to ignore the damage these outdated tax rates are causing.

The Government’s conduct in regard to this issue is nothing less than unconscionable. 

The current NSW Transfer Duty brackets (other than the top bracket for residential land over $3 million) have been in place for more than 30 years. 

The Second Reading to the 1986 Bill which on enactment increased NSW Transfer Duty rates and introduced the current base thresholds included the following statement: 

The increased rates for conveyances only affect properties worth more than $300,000 and thus will not affect the average home purchaser. 

Leanne Pilkington is the Real Estate Institute of New South Wales president.