NSW Government plans to dump stamp duty!
The State is pushing to abolish stamp duty, backed by two former federal treasury secretaries Ken Henry and Martin Parkinson.
The push came about February 2020 and now the states are preparing to change tax reform including payroll tax and stamp duty relief as an attempt to help boost the economy after the devastating effects of the coronavirus pandemic, one that left hundreds of thousands of Australians out of work.
The Victorian and NSW government will reveal within the next weeks the tax change. There is immense pressure from tax experts to find ways to lift economic growth.
Reforms like this will make a huge difference to get the economy growing again.
A reduction or abolishment of stamp duty will allow more freedom for homeowners to be able to move, upgrade, downgrade to housing when they need, allowing flexibility to free up capital when they need to without the pressure of paying a large lump sum to stamp duty.
People that have lost their jobs may need to downsize to free up capital but worried about paying a huge amount of stamp duty especially if they have only just recently bought their current property.
The growing older population may want to downsize but also are deterred to sell because of stamp duty, therefore less properties on the market.
The younger generation may want to grow from their apartment home to a bigger home to fit their growing family but may try to hold out from buying due to the high stamp duty costs in NSW.
30% of self raised taxes in NSW, Victoria and Queensland are from stamp duties on property, insurance, and vehicles.
Here is an example of how much you could save if the government was to remove stamp duty taxes.
Property that costs $500,000 = Stamp Duty $18,219.00
Property that costs $750,000 = Stamp Duty $29,469.00
Property that costs $1,000,000 = Stamp Duty $40,719.00
Property that costs $1,500,000 = Stamp Duty $68,089.00
Property that costs $2,000,000 = Stamp Duty $95,589.00
Property that costs $2,500,000 = Stamp Duty $123,089.00
If you need help with getting a loan for the purchase of your new home or refinancing your property. Please contact us at Bear Loans and we can help you.
This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice.