The biggest Stamp Duty changes in NSW in three decades are being labelled a “joke” by Illawarra Mercury readers.
State Treasurer Dominic Perrottet announced this week the tax would be indexed in line with inflation from next July, which could save the average home buyers about $500 – but the benefit should increase over time.
Jesse Smith and his girlfriend Sarah Hill are set to move out of Cronulla once they find the perfect house in the Illawarra because you get “more bang for your buck” in the region.
“It just seems kind of pointless,” Mr Smith said. “House prices have gone up so much it needs to be worth more, it’s not keeping up with the market currently.”
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The couple are currently looking to spend up to $700,000 on a two or three-bedroom home in the region, which would equate to an apartment in the Shire and “nowhere near the beach”.
Ideally they’d like to spend $649,000 or less to get the first home buyer stamp duty exemption, but Mr Smith said it’s unlikely they’ll find something suitable for that price.
“I think [politicians] are out of touch with what people are spending and what house prices are,” he said, adding more needs to be done.
Stamp Duty brackets had been largely unchanged since 1986 – when the median house price in Sydney was $100,000. It's now more than $1 million.
The Stamp Duty brackets reform will affect transactions made on or after 1 July 2019.
WHAT OTHERS SAID
The Illawarra Mercury Facebook page was abuzz with comments, generally people ridiculing the small saving.
“We’re not going to get another chance to buy that low for another 20 years,” wrote Belinda Blackmore.
“What idiot thinks that cutting a $16,000 Stamp Duty bill by $500 will mean you can finally afford to buy a house?” posted Brian Boulton.
“$500 or not even half your removalist cost 😏🙄 let alone help [getting] anyone into the market! Pretty sure [the government is] $50k short not $500,” said Kate Parrino.
“What government [official] thinks this will help housing market how out of touch can you get,” wrote Lynn Weston.
“I just paid $30,000 stamp duty. $500 won't make s*** difference,” posted Bish Bishop.
“How’s that going to lower house prices for the next generation??? Oh sorry they be all living Bourke [and] working in Sydney,” wrote McLaughlin Tommy.