- There were 184,200 transfers in the year-to-February 2021
- Year-to-September 2017 saw 214,000 transfers (all time record)
- Meanwhile, there are growing calls to reform stamp duty
Data from the Office of State Revenue of New South Wales has revealed the State’s coffers received a handsome amount of stamp duty receipts.
In the year-to-February 2021, stamp duty takings rose to $6.2 billion, representing an 18% increase.
However, the level seen is still below the all-time high recorded in the year to September 2017 when $7.4 billion was collected.
The lift in revenue has been attributed to the 184,200 transfers in the year to February – an increase of 16%.
This figure is also below that of the September 2017 peak which saw 214,000 transfers.
As previously reported in The Property Tribune, dwelling values are rising especially fast in NSW – which directly influences the amount of stamp duty the NSW Government collects.
In 2020, the NSW Government gave out 41,000 stamp duty exemptions or concessions, representing a 30% increase compared to 2019. The total value of this was $559.7 million – a 15% increase compared to the $485.9 figure seen the previous year.
Additionally, the exemption cap for first home buyers purchasing new homes was increased from $650,000 to $800,000 with concessions gradually phasing out until hitting $1 million.
It is believed this exemption increase facilitated more first home buyers entering the market. In 2016, first home buyers represented 15% of the owner-occupier market with this figure now at about 30%.
Despite the sharp increase in revenue, NSW Treasurer Dominic Perrottet previously acknowledged the impact stamp duty had on first home buyers.
“Stamp duty is a significant financial barrier to those buying a first home and this program has helped thousands of people go from renters to homeowners without saving for years to pay stamp duty.”
Dominic Perrottet, NSW Treasurer
This comes as calls have been made to replace stamp duty with a two-stream system, whereby buyers could either pay stamp duty as a lump sum or an annual land tax. REINSW is particularly keen on such reform.