New South Wales is planning to ditch stamp duty and payroll taxes as it faces a $9 billion unemployment hit from the pandemic. Stamp duty is the nation's biggest source of revenue, last year raising $7.5 billion for New South Wales. Treasurer Dominic Perrottet said there was no better time to get rid of inefficient taxes that held back economic growth. The axe is part of a five-point recovery plan focussed on productivity, tax reform, deregulation, trade and investment.
The NSW Treasurer’s announcement on the weekend has frozen a lot of buyer interest. (REINSW)We have received further clarity around the Stamp Duty plans from the minister’s office this afternoon. The message from the minister’s office reads as follows:
“At this time, it is a proposal only and will need to be subject to extensive public and industry consultation before it would be progressed to a point of announcing a firm proposal or start date.
In short, it is not something that will occur in the near term or something that people who are currently potentially purchasers or vendors should factor into their decision-making.”