Changes to NSW’s stamp duty brackets commenced on 1 July 2019. The seven stamp duty brackets are now indexed to the Consumer Price Index (CPI) meaning that they will rise with inflation. Over the past 15 years the average rate of stamp duty has risen from 3.37 to 4.05 per cent. Correspondingly, in Sydney, the median house price has risen from around $400,000 to $1 million.
The new changes have been implemented to ensure that Stamp Duty on housing does not continue to increase. The Berejiklian Government says that the changes will reduce the average amount of stamp duty per property by $500 by 2021.
The changes to the stamp duty brackets are as follows:
Pre 1 July 2019 | From 1 July 2019 | ||
Properties valued at $300,001 to $1 million | $8,990 plus 4.5% of every $1 over $300,000 | Properties valued at $304,001 to $1,013,000 | $9,112 plus 4.5% of every $1 over $304,000 |
Properties valued over $1 million | $40,490 plus 5.5% of every $1 over $1 million | Properties valued over $1,013,000 | $41,017 plus 5.5% of every $1 over $1,013,000 |
Residential properties valued over $3 million | $150,490 plus 7% of every $1 over $million | Residential properties valued over $3,040,000 | $152,502 plus 7% of every $1 over $3,040,000 |
Had the brackets been indexed 15 years ago, the stamp duty amount to be paid on a $1.5 million home would be around $6400 lower today.