The NSW Government is gradually progressing to kick-start the economy. Homebuyers in NSW are gearing up to save tens of thousands on their home purchases after the State undertook one of its biggest tax reforms of removing the stamp duty. The reform could be a key step towards a more efficient system of taxation. It comes right when Australia’s biggest state recorded a historic $16 billion budget deficit. Notably, NSW has not had a budget in the red for almost a decade!
* What happens if we infer from the Reform? Stamp duty distorts real estate decisions for perhaps every age group. The elderly remain in huge, underutilized properties rather than pay out a hefty fee and downsize. For the young, stamp duty adds heaps of dollars to already inflated prices, explaining why homeownership for under 35s has fallen.
