The NSW State Government have announced plans to change stamp duty price brackets.
From 1 July 2019, stamp duty price brackets will be pegged to CPI (Consumer Price Index) resulting in savings for property buyers. Initial savings would be anywhere between $200 to $600 with those savings increasing over the years.
For the Greater Sydney region, the average house price is $990,000 with a further $40,040 payable for stamp duty. If the stamp duty brackets were increased by CPI one year ago (July 2017), the average buyer would have saved almost $300.
According to the NSW Treasurer, stamp duty price brackets have not been changed since 1986. If the price brackets were increased by CPI since 1986, the current average stamp duty cost would be $13,484 (one third of current stamp duty costs).
Over FY2016/17, well over a quarter of all NSW State Govt revenue was due to stamp duty (almost $9 billion).
The current stamp duty price brackets for NSW are as follows:
Minimum bracket price
Maximum bracket price
Percentage fee exceeding minimum bracket price
According to CoreLogic data, as at 31 July 2018 the average sales prices for Greater Sydney region dwellings is $840,000. Houses are selling on average for $990,000 and units for $712,000.