What would it mean for buyers if stamp duty is abolished?

NSW Premier Dominic Perrottet is committed to phasing out the stamp duty and introducing land tax! According to the latest reforms, some home buyers will have the option of paying an annual land tax instead of paying stamp duty upfront.

Only 4-6% of those who buy a property each year would bear this tax burden.

If stamp duty is removed, buyers will soon find that their next purchase is much cheaper.

Not having to pay stamp duty may increase people's ability to borrow so that they can afford more expensive properties. On the other hand, if stamp duty is replaced by an annual land tax, then the land tax levy may make it more expensive to own property.

Although it has not been confirmed yet, the reforms will be part of the final budget and we have received subtle signs from the government that the reforms will be implemented.

Click the image below to read more about what Sydney Morning Hearld expert Alexandra Smith has to say.