Over the past 15 years, the average rate of stamp duty rose from 3.37 per cent to 4.05 per cent. At the same time, the median house price in Sydney rose from around $400,000 to $1 million. The new changes ensure the tax on housing does not continue to grow.
The immediate savings are modest but will become substantial for home buyers in the long term. If stamp duty brackets had been indexed to CPI 15 years ago, the amount payable on a $500,000 home would be around $2000 lower today; the amount payable on a $1.5 million home would be around $6400 lower.
NSW Treasurer Dominic Perrottet said the reform was the most significant in a generation with the current system having remained largely unchanged for over 30 years.
“We haven’t seen any significant action on stamp duty brackets since 1986 when the median house price in Sydney was $100,000, now it has climbed to $1 million,” Mr Perrottet said.
“Whether you are a first homebuyer, a downsizer or upgrading to the family home you will ultimately benefit as a result of this reform.”