Other information about the property tax proposal
Find out how property tax rates would be calculated, and further information on stamp duty and land tax.
Community members and industry stakeholders were invited to provide feedback on the proposed property tax reform.
Submissions for this consultation closed mid-March.
Browse the submissions received through the consultation period.
The Literature Review examines the empirical evidence regarding the efficiency effects of two aspects of this potential reform, with the goal of informing public debate about the merits of the proposal.
How would the property tax rates be calculated?
For more information and updated rates read the Progress Paper (PDF, 3.32 MB).
History of stamp duty
Stamp duty was introduced in NSW in July 1865. The current rates were set in 2004 and since 2019 the rate structure has been adjusted annually to account for inflation.
In 2019-20, stamp duty represented 23% of the total annual tax revenue – the state’s second largest tax1.
Over the last two decades a series of tax reviews have been conducted. These reviews have generally recommended abolition of stamp duty and replacement with a broad-based tax on land2.
What are stamp duty and land tax?
Stamp duty (also known as transfer duty) is payable in NSW upon purchasing the following:
- Property, including a home or holiday home
- An investment property
- Vacant land or a farming property
- Commercial or industrial properties
- A business which includes land
Stamp duty is generally payable within three months of signing a contract for sale or transfer. Owner-occupiers buying off the plan have 15 months from the date of contract. It is typically calculated based on the property’s sale price or its current market value, whichever is higher.
Read more about stamp duty.
Land tax is an annual tax levied at the end of each calendar year on all property you own that is above the threshold. An individual’s principal place of residence is exempt from this levy. The land tax is calculated on the total value of all your taxable land above the threshold. Thresholds for land values change each year.
Read more about land tax.
The proposed changes were announced in November 2020 and contained in the Consultation Paper (PDF, 1.8 MB).
2. Major reviews include Harvey et al (2001, IPART (2008), the Henry Review (Commonwealth of Australia 2010), the Lambert review (NSW Treasury 2011) and the Productivity Commission’s “Shifting the Dial” review (2017), Thodey Review of Federal Financial Relations (2020), NSW Productivity Commission White Paper (2021)