Sydney buyers slugged by stamp duty

According to a residential stamp duty report released by BankWest today, stamp duty on the typical Australian home has risen 59% in just five years, almost double the rise of household income during the same time.

In four out of eight capital cities – Sydney, Melbourne, Adelaide and Perth – home buyers must now set aside at least 20% of annual incomes to cover stamp duty bills.

Sydney home buyers are paying higher rates of stamp duty on residential properties than buyers in other states. The BankWest residential stamp duty report shows the median stamp duty bill in Sydney is $19,385, the highest of all eight capital cities. Brisbane has the lowest, at $5,688.

Stamp duty thresholds have not changed in NSW while house prices have increased 20% since 2003. Only Victoria and Western Australia have increased thresholds to match the rise in house prices.

BankWest chief executive of retail Ian Corfield said the hefty costs would increase the incentive for existing home buyers to stay put and renovate rather than buy a new house, compounding an already faltering market.