Cabinet’s expenditure review committee has approved a reservation of funding for the changes,which will put NSW in front of the other states in housing tax reform. Only the ACT has overhauled stamp duty.
According to the most recent update to the reforms,the top 20 per cent of NSW residential property prices would not be eligible to opt in for land tax and would continue to pay stamp duty,to help limit the decline in the government’s revenue. Past buyers would not be affected.
The decision to move to a land tax would be permanently locked to the property,so future owners would have to pay the land tax if a previous one had.
Loading
This would eventually lead to stamp duty being phased out across NSW.
NSW Treasury has estimated that an optional annual tax would collect about 20 per cent less revenue,which equates to a projected shortfall of about $2.5 billion a year.
Perrottet would not reveal the details of the package to be unveiled in the budget,and NSW Treasurer Matt Kean is leaving it to the premier to detail his signature policy. However,theHerald has confirmed from senior government sources the reforms are in the budget.