“This is the first adjustment to Stamp Duty rates since the average house in Sydney cost just $80,000.

“State governments have become increasingly reliant on Stamp Duty from housing as a main source of revenue.

“Around $1 in every $5 of state government revenue comes from Stamp Duty on houses.

“The announcement by the NSW Government to address bracket creep for the first time in over 30 years is a meaningful contribution to ensuring that the impost of Stamp Duty does not
continue to grow.

“Stamp duty is an inefficient tax and it has a disproportionately high impact on households that are vulnerable due to changes in their circumstances including employment, health or other family-related matters.

“Stamp Duty is also a volatile source of tax revenue, as the NSW Government is currently experiencing. A small fall in house prices has had a disproportionate impact of state government revenue.

“A better long-term solution would be to phase out Stamp Duty altogether and replace it with a form of revenue that doesn’t punish buyers for wishing to pursue their dream of owning a home,” concluded Mr Reardon.

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