NSW slugs investors, helps first homebuyers
There was mixed news for property buyers in the NSW mini-Budget announced by Treasurer Michael Egan. The State Government will abolish stamp duty for first-home buyers of houses priced up to $500,000, costing the Government $275 million in foregone tax. But property investors will pay a new 2.25 per cent stamp duty on the sales of their properties and have to pay land tax across the board, not just on properties worth more than $317,000. This could result in up to 250,000 property owners paying land tax for the first time.