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Help to first home-owners and a blow to foreign investors

Publication date: 01 Jun 17 | Source: THE TAX INSTITUTE

The Tax Institute’s Senior Tax Counsel, Professor Robert Deutsch says, “While the changes to NSW stamp duty announced today for first home buyers are a positive step towards helping first homebuyers step onto the property ladder, it remains to be seen how these changes will affect house prices in NSW overall”.

“The changes may fuel demand for housing by first home buyers who will have more money in their pocket to spend. Making it harder for foreign purchasers to buy and own land in NSW with a doubling of the stamp duty surcharge should also assist. However, if the housing supply remains the same, this might neutralise the benefit of these stamp duty changes”, says Professor Deutsch.

“The doubling of the foreign purchaser stamp duty surcharge to 8% and nearly tripling the land tax surcharge to 2% seems to be in line with what we see as a new ‘anti-foreigners’ policy’ trend in revenue laws of late. We saw this feature in the recent Federal Budget and it doesn’t really come as a surprise that the States are following suit”.


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Stephanie Conway, Media Relations Contact: 02 8223 0011

The Tax Institute is Australia’s leading professional association and educator in tax. Its 12,000 members include tax agents, accountants and lawyers as well as tax practitioners in corporations, government and academia. The Tax Institute supports the tax profession through education and professional development and works to continually improve tax law and its administration.