Perrottet said his election commitment,which would cost $200 million over the next four years,was designed to give families more choice throughout their home ownership journey so they could “live in the right home at the right time of their life”.
“We know that stamp duty is a significant barrier to home ownership,particularly for young people and families trying to break into the market for the first time,” Perrottet said.
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“This expansion gives families more choice when buying their next home,making it easier to upsize,move closer to loved ones,or relocate for a new job or when the kids start school.”
NSW Treasury had estimated that 6000 first home buyers a year would choose the land tax option. Since January 16,when the scheme formally started,1460 have opted in.
The Blacktown local government area has the highest take-up,followed by Bayside,Parramatta,Sydney and Cumberland.
Under the changes passed in November,property tax rates will be indexed so the average annual payment grows at the same rate as gross state product (GSP) per capita.
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However,to avoid bill shock,annual increases will be capped at 4 per cent.
Labor is opposed to the reforms,labelling the opt-in system a “forever tax on the family home”.
It has promised to ditch stamp duty for first home buyers on purchases up to $800,000 and offer a reduced rate for homes up to $1 million in a $722 million plan to counter the state government’s scheme,which Labor has vowed to axe if elected.
Labor says independent modelling by the Parliamentary Budget Office shows that within the first three years of Labor’s changes,27,700 first home buyers across NSW would have paid no stamp duty. An additional 18,800 first homebuyers would have paid a discounted rate.
The government has seized on the high take-up of the new scheme in Labor leader Chris Minns’ council area of Bayside as proof that the opposition has ignored support for the policy.
Treasurer Matt Kean said that under the Coalition’s policy,a “family who buys their first home in western Sydney for $1 million,sells it after five years and buys their second home for $1.5 million could save more than $90,000 over their first decade as homeowners”.
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