Border agents welcome NSW, Victoria property stamp duty reforms

The NSW government on Tuesday, May 23, was flagging scrapping the previous Perrottet government's reform plans and introducing laws to increase stamp duty exemptions meaning most first-home buyers will pay no tax or a reduced rate.

In Victoria, the government announced on Tuesday it would seek to abolish stamp duty on commercial and industrial properties, replacing it with an annual property tax set at 1 per cent of a site's value.

The NSW government will introduce laws to increase exemptions on stamp duty or first-home buyers, up from a previous cap of $650,000 to $800,000, and introduce concessions on homes up to $1 million.

The government has secured support from the Greens and independent MP Alex Greenwich, with the reforms likely to pass as soon as next week but the government still requires support from two upper house crossbenchers.

Leading Property Group director Lucinda Morgan said the move would be a boon for first-home buyers in the Border region.

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"This is a great move for people buying on the Border because pretty well all first-home buyers in this region would be below $850,000, so this is fantastic," Ms Morgan said.

"No stamp duty, up to $850,000, and then from $850,000 up to $1.5 million, it'll be a reduced amount, so hey, we're all for it.

"I can see how this will absolutely affect people, maybe not so much in Wollongong and places like that, but on the Border I think lifting the cap up to $850,000 is good, I've got nothing bad to say about it whatsoever."

In Victoria, the transition away from stamp duty for commercial and industrial properties will occur after they are sold, with the annual property tax applying after a further 10 years.

The arrangements would not apply to current owners of commercial properties.

Agent Andrew Dixon, of Dixon Commercial Real Estate said he cautiously welcomed the reform.

"At this point it's not being abolished, it's not charged upfront but charged over 10 years," Mr Dixon said. "This is good progressive tax reform in the fact that stamp duty is not been paid at settlement, so potentially, there's more capital to invest into commercial property."

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