David Leyonhjelm, lead candidate for the Liberal Democrats, today announced he will push to abolish stamp duties if successful in winning the balance of power at the NSW election.
“Stamp duty adds about $43,000 to the median cost of buying a home,” he said.
“Stamp duty is a cruel hurdle for those wanting to own their own home. It also discourages existing homeowners from moving, prompting people to remain in houses that are too big, too small, or too far from their current job. Stamp duty potentially contributes more to frustration and family tension than any other tax.”
Stamp duty also applies when purchasing a car.
“When purchasing a car, a stamp duty of either three or five per cent applies. This discourages us from upgrading, meaning our car fleet is one of the oldest in the developed world. This reduces safety and adds to the road toll and emissions. Nationwide, car and fuel taxes exceed the cost of roads by more than $4 billion each year.”
Stamp duty also applies when purchasing insurance.
“Taxes on insurance make no sense. Why discourage people managing their risk through purchasing insurance?
“Under the Liberal Democrats, you’d no longer be stung by government when you buy a home, a car, or insurance. Our aim is to get government out of your life.
“Abolishing stamp duties in NSW would be a $9 billion annual tax cut. Each year the NSW Government collects more stamp duty per person than other State Governments: $1,100 instead of $1,000.”
The Liberal Democrats’ plan to abolish stamp duties taxes is part of a fully-costed alternative budget, to be published later this month, involving each State delivering budget surpluses and significant cuts to taxes and government spending.
