Bathurst Blog

From July 2019 NSW will become the first state to tie the price brackets that determine how much stamp duty is paid by home buyers to inflation, according to a government announcement (AAP 5 November 2018)

Home buyers are promised cheaper stamp duty under the first major change to the tax in 30 years. There are differing rates of stamp duty according to which price bracket applies, increasing with value. From July, the brackets that determine that rate will rise in line with inflation, giving relief from ‘bracket creep’.

Premier Gladys Berejiklian conceded the changes would currently only save homebuyers a few hundred dollars, but predicted it would increase into the future. "Whilst today the savings are in the hundreds, in the future the savings will be in the thousands," she said. NSW Treasurer Dominic Perrottet called it the "most significant reform in a generation", noting the brackets had been largely unchanged since 1986 - when the median house price in Sydney was $100,000. It's now more than $1 million.

"Whether you are a first homebuyer, a downsizer or upgrading the family home you will benefit from this reform," he said in a statement. "Pegging stamp duty to CPI will reduce the tax burden on homebuyers, allowing them to put more money towards a deposit."

Raine & Horne Bathurst keep an eye on all changes to laws affecting real estate in our state. If you are contemplating a sale, purchase, lease or property management, feel free to contact us on 02 6331 6555 at any time or come on in to our office for a chat.