NSW stamp duty boost for state government coffers

Sydney's strong property market has triggered a windfall in stamp duty for the state government.

The NSW government's half-yearly budget review indicated stamp-duty revenue was 40% higher in 2013-14, allowing the Treasurer Andrew Constance to say the NSW budget was the "envy" of the nation.

The state government also expects $744 million more stamp duty in 2014-15 than it forecast in the May budget.

Stamp duty revenue was now expected to be up by 12% during the current financial year.

Much of the gain was through commercial and industrial property sales.

But softer revenue than expected in payroll tax and mining royalties was noted along with the jobless rate expected to be higher than the prior 5.5% forecast.

After predicting a $283 million deficit for 2014/15 mid-year, the review revealed a likely surplus of $272 million.

The $555 million turnaround was mostly attributed to property stamp duty.

"Higher-than-expected property transfer duties are the significant driver of the 2014/15 surplus forecast," Treasurer Andrew Constance said.