This news will probably confirm what you have suspected. The average cost of transfer stamp duty on a residential property has sky rocketed in NSW.
We have taken a look at the state government’s stamp duty statistics and have been shocked to find out that the average residential property buyer is now paying $8,290 more in Transfer Stamp Duty than they were in 2005. Have a look at the table we have created below.
We were struggling to come up with a headline for this blog that accurately depicted the extent of this tax burden. Here are some of our attempts:
“Bracket Creep rip off”
“NSW Govt cruels the property market”
“Call to ban property entry fees”
“Reduce stamp duty on owner occupied homes”
“Time for the State Govt to reset Stamp Duty rates”
“Rising home prices, a bonanza for Govt coffers”
Our biggest concern is the dampening impact that this government impost is placing on our property market. Clearly, an extra $8,290 ($22,760 – $14,470) is going to slow down a property buyer’s ability to participate in home ownership.
As Sydney property prices continue to climb, buyers are being pushed into higher stamp duty % brackets. There has not been a substantial change to these bracket milestones for a very long time. We believe it is time for the government to undertake an urgent review. Hopefully the mainstream media will latch on to this story. As we have seen in recent times, media pressure is very powerful in our democracy.
No doubt the cash strapped government is enjoying the massive increase in revenue but this tax has now become a substantial burden on NSW home buyers. Time for an urgent review.
Michael Daniels, B.Com
Smartline Personal Mortgage Advisers
State Manager NSW & ACT
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.