Over the years there have been several reviews recommending transfer duty be replaced with a broad-based land tax. This budget included proposed stamp duty reform as follows:
- It is proposed that home buyers will be able to choose between paying stamp duty upfront or paying a smaller, annual property tax.
- Once a property is subject to the property tax, subsequent owners must pay the property tax.
- It is intended to incentivise home ownership with lower rates for owner-occupiers.
- There is no impact on the current property owners who are not buying or selling.
- Current stamp duty concessions will be replaced with new grants for first home buyers.
- The proposal is in consultation phase until 15 March 2021.
This link contains further details regarding the proposed changes to stamp duty, including the consultation paper.