O’Dea Backs Stamp Duty Reduction for Downsizers
Retirees looking to downsize could receive a reduction in or exemption from stamp duty on their new smaller property purchase, while families would benefit from an increased housing supply of larger houses.
This would be the effect of an idea endorsed for consideration by Member for Davidson, Jonathan O’Dea, as a means to help address the difficult housing affordability situation in NSW.
Mr O’Dea promoted the suggestion in delivering the keynote address at the Housing Industry Association’s Industry Outlook Breakfast this morning.
“To free up housing, especially in an area like Sydney’s North Shore, I believe there is a real argument for a reduction in NSW stamp duty for those wishing to downsize,” Mr O’Dea said.
“Currently, the high cost of stamp duty inhibits empty nesters moving out of larger dwellings that are arguably more appropriate for growing families.”
One quarter of potential downsizers regarded selling as impractical because of moving costs, according to LJ Hooker research recently reported in The North Shore Times.
Mr O’Dea continued, “In such cases, a reduction in stamp duty on smaller properties being purchased by retired downsizers would assist to free up the housing market and make family homes in growth areas more readily available.”
Full stamp duty would still be payable on the larger property being sold, potentially generating more government revenue and real estate activity, as the volume of housing transactions increased.
Such a measure would complement the improved housing affordability measures already announced in the recent State and Federal budgets. It would be similar to a scheme that existed from 1 July 2010 to 2012, albeit subject to a now unrealistically low purchase limit of $600,000.
The NSW Government is committed to making housing more affordable for all people in NSW. For more information, visit https://www.nsw.gov.au/improving-nsw/premiers-priorities/making-housing-more-affordable/