This week, the NSW Treasurer handed down a bold budget. While there are several critical announcements that will play an important role in stimulating economic recovery – the one that has everyone interested, is the announcement of the planned phase out of stamp duty across the state.
The purpose of the reform is simple, to stimulate spending on property, removing what is perceived to be a significant disincentive to buy, particularly for first home buyers. The changes will also simplify the tax base for the State and guarantee tax income to the government in volatile property market ups and downs.
While the change presents an upfront budgetary cost to enable the switch, the reform will ultimately prove a game changer for both the NSW and Australian economy.