NSW State Treasurer Dominic Perrottet was three years old the last time stamp duty was set within the state. 

It is for this reason that the Real Estate Institute of New South Wales believes more needs to be done to reform the tax in the 2019/20 state budget. 

While NSW is set to become the first state to index stamp duty brackets to the consumer price index next month, REINSW CEO Tim McKibbin described the changes as a "smoke and mirror" exercise.

"Stamp duty needs to reduce substantially, and if they do that, the evidence shows very clearly they would be one of the beneficiaries," he said.

At a glance:

• The NSW Budget will be handed on Tuesday, June 18 by state treasurer Dominic Perrottet.
• A drop in stamp duty is expected to cost the government $8 billion over four years.
• REINSW CEO Tim McKibbin said there needed to be further reform to the tax.

"This would come from stimulating the market and encouraging more transactions.

"The reality of indexing rates that are more than 30 years out of date is that it's too little too late." 

Earlier this year, REINSW commissioned CoreLogic to provide housing data for the year up to October 2018, revealing the top 50 suburbs for stamp duty paid in the state.

The Sydney suburb of Mosman topped the list with a total stamp duty payment of $90,154,540 from 315 properties sold at a median sales price of $4,100,000.

Randwick was ranked second with stamp duty payment of $43,979,150 from 252 properties sold at a median price of $2,455,000.

A drop in stamp duty is expected to cost the government $8 billion across the next four years, with the Premier giving a strong indication that the public sector will bear the brunt of the losses.

Mr McKibbin said NSW risked being a casualty of an under-performing market with the current rates. 

"In many ways, the government has been the author of its own misfortune," he said.

"They need the revenue to run the state which is fair enough, but if you push too hard, you end up freezing the market.

"It is a serious disincentive to transacting property and that is what is happening now."

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