Housing affordability is a critical issue affecting NSW. Committed to advocating for meaningful change, REINSW has recently lodged a submission to the NSW Government, addressing the significant impact of stamp duty bracket creep on property sales, investment, and overall affordability
Impact of stamp duty bracket creep
Stamp duty brackets have not been adequately adjusted to keep pace with property price increases in NSW, leading to higher tax burdens on buyers. As a result, even median-priced properties are taxed at higher rates, making homeownership less affordable.
Challenges posed by the current stamp duty framework
High upfront stamp duty costs impede homeownership by delaying or preventing purchases, which in turn exacerbates the strain on the rental market. Additionally, stamp duty discourages property sales, limiting market mobility and reducing opportunities for downsizing, relocation, and optimal use of housing stock. The burden of these costs also deters property investors, further contributing to the decline in rental supply and intensifying the ongoing housing crisis.
Our recommendations to Government for consideration include:
• Stamp duty exemptions or reductions to encourage property investment and support the housing market.
• Extending the first home buyer’s grant to investors as well as owner-occupiers, boosting rental supply in areas that need it most
By adopting these measures, we believe the government can take a vital step towards alleviating the housing crisis and increasing much-needed rental stock.
Potential benefits of adjusting stamp duty
Reducing stamp duty would stimulate property transactions, driving higher volumes in the market and increasing government revenue, while also addressing housing affordability challenges.
Additionally, incentivising rental investments could enhance housing supply, helping to stabilise rental costs for NSW tenants and ease the pressure on the rental market.
For a comprehensive overview of our recommendations to Government, we encourage you to read the full submission in the submissions section on the submissions page.
Should you have any questions about these proposals or stamp duty bracket creep, feel free to reach out to the REINSW Helpline on (02) 9264 2343 or email helpline@reinsw.com.au .
