Economists welcomed NSW’s plan to phase out stamp duty, but warned the slated plan to exclude higher value properties is flawed and will create problems down the track.
Axing stamp duty in NSW will create a race to the top for other states to match the move and start the ball rolling on broader tax reforms, economists say, while warning the slated plan to exclude higher value properties is flawed and will create problems down the track.will be one of the major reforms in next week’s NSW budget
“That’s good news for people who are thinking, ‘well, do I want to live in Melbourne, do I want to live in Sydney’, and so I think Victoria will be under some pressure to respond to that.” Jackson said people currently face a significant impost at the point of buying a property, which stops some transactions from occurring – potentially dissuading people from downsizing when faced with a significant tax on a new property.