Overview of the NSW property tax proposal
The proposed changes could give you the freedom to choose between paying stamp duty upfront or paying a much smaller annual property tax, when you buy your next home.
Property Tax Factsheet
The Factsheet provides an overview of the NSW Government's property tax proposal.
Changes to stamp duty
Stamp duty is one of the biggest financial barriers to home ownership.
If implemented, the proposed changes could give you the freedom to choose between paying stamp duty upfront or paying a much smaller annual property tax, when you buy your next home.
Removing the upfront cost of stamp duty could remove tens of thousands of dollars from the home purchase process and make it easier for first home buyers, families looking to upgrade and others looking to change their property to save what is needed to purchase their next home.
Unless you are buying a property, there would be no change. If you have already paid stamp duty on your existing property, you would not be subject to an annual property tax. There would be no double taxation.
Land tax places a large tax burden on a small number of taxpayers. If implemented, these proposed changes could give property buyers the freedom to choose either to pay stamp duty and land tax (where applicable) or to pay an annual property tax.
This proposed change could put money back into the pockets of NSW residents when taking the significant financial step of buying a home.
The proposed changes could provide a critical economic boost at the time we need it the most, injecting $11 billion over four years into the economy providing much needed stimulus in the current downturn.
It could deliver the most significant economic reform available right now to strengthen our state’s economy and increase our prosperity over the long term.
Consultation on proposed changes to property tax was undertaken from 17 November 2020 to 15 March 2021. The feedback has been reviewed and the Progress Paper, a report that summarises the feedback and provides reform updates, has been made available as part of this website.
We would like to thank the thousands of people across NSW who provided their valuable insights about the proposal and what it could mean for those wanting to access the housing market.
Consultation activities included surveys and polls on the dedicated Have Your Say website and submissions via the mailbox to ensure a comprehensive and holistic understanding of the views of the NSW community.