New South Wales may be in danger of stamp tax reform

The New South Wales (NSW) prime minister has told opposition parties to ‘give way’ in his signature reform to give first-time home buyers more choice.

A law giving first-time home buyers the option to choose between paying an annual land tax or a larger one-off stamp duty of up to $1.5 million on all properties was announced Thursday in NSW. It is being debated in the state legislature.

Prime Minister Dominic Perrottet said that if the 2022 property tax (First Home Buyer Choice) bill is passed, he will call Gov. Margaret Beasley to seek immediate enactment of the bill.

This means that first home buyers may have access to the scheme by Saturday.

“I say to the New South Wales Labor Party, get out of the way and help first-time homebuyers reach Australia’s great dream,” Mr Perrotet said.

“We know there is nothing more important than owning a home, especially for young families.”

He said his discussions with Crosbench lawmakers were constructive and he hoped the bill would be passed.

Labor leader Chris Minnes has continued to oppose the bill, which he described as a “Trojan horse” created by the government to introduce a wide-ranging land tax on families, which has been steadily growing over time. said to increase to

They have vowed to repeal the law if Labor wins the government in the March elections.

“Our concern is that future governments will raise land tax rates,” Mins said Thursday.

“If you’re already on that merry-go-round, you have to trust this prime minister, and all future prime ministers, not to raise the land tax rate on your family home.”

Green MP Abigail Boyd has said she wants the bill amended, so changes cannot be implemented until after the election.

She said the split between the Liberal and Labor parties over the policy, and the possibility of a change of government in the March elections, could lead to the policy being scrapped at a great cost to taxpayers.

“It seems like an incredible waste of time and money. And not only does it create a lot of uncertainty for first-time home buyers, but if we allow this…the bill is now in effect and Labor is next. ​will only be rewound if they win an election,” Boyd told AAP.

The prime minister claims the reform will allow first-time homebuyers to make decisions that suit their financial situation.

“This will enable young people in particular to enter the housing market faster and grow their wealth,” said Perote.

After passing the lower house last month, the bill was referred to the upper house for review.

The inquiry received 15 submissions, held one public hearing, and made one recommendation for consideration by the Senate to address concerns identified by stakeholders.

Labor MP Tara Moriarty, chairman of the commission, on Thursday heard arguments in favor of the bill in the inquiry, but raised concerns such as how often the plan would be reviewed and whether it would increase property prices.

Others hoped that more homebuyers would be able to opt for the scheme.