Dominic Perrottet says he needs federal help to abolish stamp duty in NSW

NSW Premier Dominic Perrottet says his party wants to end stamp duty for property buyers but cannot act without the support of the federal government.

Mr Perrottet has long supported the phasing out of the one-time government fee in favor of an annual broad-based property tax.

In a government proposal released last June, the then Treasurer wrote that the move would boost home ownership, boost the economy and increase the annual income of NSW residents “by more than $10 billion”.

“I think stamp duty is the worst tax a government can have,” Mr Perrottet said this morning.

“It’s a massive barrier for people to enter the housing market.”

Dominic Perrottet Says States Can’t Eliminate Stamp Duty Without Federal Assistance(AAP: Jane Dempster)

But NSW Shadow Treasurer Daniel Mookhey said families would be worse off under the proposed property tax scheme.

“I don’t know where Mr. Perrottet thinks working families could find the money to pay him an annual property tax on their home that lasts forever,” he said.

“Our model shows that if Mr Perrottet introduces this tax, a typical Sydney family will be paying $2,400 a year starting next year.”

The PM confirmed that next week’s state budget would contain announcements and proposed changes related to housing affordability, but clarified that no agreement had been reached with the Commonwealth.

“The reality is that state governments cannot eliminate stamp duty without the support of the federal government,” he said.

“This is a moment for the federal and state governments to work together to bring economic opportunity to the people of the future.”

Mr Perrottet is due to meet the Prime Minister on Friday.

He said he plans to prioritize discussions about health care reform and labor shortages.

“If they want to introduce tax reform along the way, I’m in,” he said.

After hitting record highs in January, Sydney property values ​​are down 1.5 percent, according to CoreLogic data.

While the cost of buying a home in Australia’s largest city is 22.7 per cent above pre-COVID levels, the month-on-month fall in value is growing on the back of rising interest rates.

The average mortgage in NSW is $786,035, according to the Australian Bureau of Statistics, while the national average is $611,154.

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