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Sydneysiders pay most stamp duty: study

Posted December 1, 2008 09:36:00
Updated December 1, 2008 12:09:00

The study found Sydney homebuyers have to work for three months to pay for stamp duty. (Getty Images: Ian Waldie)

• Map: Sydney 2000

There are calls for a review of stamp duty in New South Wales in the wake of a study showing Sydney homebuyers face the largest tax burden in the country.

The research by BankWest found the median stamp duty on a typical Sydney home is more than $19,000 or about 24 per cent of household income.

That is $2,000 higher than in Melbourne and three times greater than Brisbane.

The study also found Sydney homebuyers have to work for three months to pay stamp duty on a median priced home.

Overall, NSW stamp duty thresholds have remained the same for five years while property price have increased by 20 per cent.

BankWest chief executive Ian Corfield says it suggests there is a need for reform.

"It's an area the State Government needs to look at if it wants the housing market to get moving again because this is a big burden on people," he said.

"I guess anecdotally it would suggest to us that people would probably renovate their house rather than move house, and if you want to get the housing market moving you need people to be purchasing new homes."

The NSW Opposition says there needs to be a review of stamp duty.

The Opposition's Planning spokesman, Brad Hazzard, says stamp duty thresholds for owner-occupiers have not changed in five years while property prices have soared.

Mr Hazzard says the rates are killing the property market.

"People would rather keep their money in their pocket or put it into renovations than put it into buying new property," he said.

"That means it's time for a review and the Government needs to look seriously at reducing both the actual amounts and the thresholds."

Ken Morrison from the Property Council agrees.

"The more the transaction taxes are increased, the less transactions you have," he said.

But the New South Wales Government has rejected claims the stamp duty burden on homebuyers is too great.

A spokesman for the Treasurer, Eric Roozendaal, says the rate on an average home in Sydney is the third lowest of any capital city. He says there are also hefty concessions for new homebuyers.

Tags: business-economics-and-finance, industry, housing, community-and-society, urban-development-and-planning, government-and-politics, states-and-territories, tax, australia, nsw, sydney-2000, qld, brisbane-4000, vic, melbourne-3000