The proposal to scrap stamp duty is gaining traction as the NSW state government launches a public consultation giving buyers the opportunity to opt out of paying stamp duty.
Instead, it has been proposed that an ongoing tax would be charged, which would reduce the significant barrier currently in place for those who are seeking to purchase a home.
One of the biggest impacts we believe we’ll see will be for first home buyers who don’t have a deposit and aren’t within the stamp duty discount range, and upgraders & down-graders who are put off by the high cost of buying and selling.
Whilst this is a great result, we believe this will, in addition to proposed lending changes, make borrowing for a property easier and put upward pressure on property prices.
At this stage, it is just a proposal, although the fact that it has been announced as part of the NSW Budget 2020-21 would suggest that it is more on the likely side that this will happen than not. Even if it does happen, it isn’t scheduled until after mid-2021, so our advice is to stick to business as usual for now and to watch this space!