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NSW Premier Dominic Perrottet says his party wants to scrap stamp duty for property purchasers but cannot act without the support of the federal government.
- Dominic Perrottet says stamp duty is the "worst tax that any government can have"
- NSW Labor says people will be worse off under a proposed land tax
- Mr Perrottet will meet with the Prime Minister on Friday
Mr Perrottet has long supported phasing out the one-off government fee in favour of an annual broad-based land tax.
In a government proposal published in June last year, the then-treasurer wrote that the move would stimulate home ownership, grow the economy and boost the annual incomes of NSW residents "by more than $10 billion".
"I believe stamp duty is the worst tax that any government can have," Mr Perrottet said.
"It is a massive impediment for people getting into the housing market."
But NSW Shadow Treasurer Daniel Mookhey said families would be worse off under the proposed land tax scheme.
"I don't know where Mr Perrottet thinks that working families could find the money to pay him an annual land tax on their home that lasts forever," he said.
"Our modelling shows that a typical family in Sydney will start paying $2,400 each year from next year if Mr Perrottet introduces this tax."
The Premier confirmed next week's state budget would include announcements and proposed changes relating to housing affordability, but clarified that no agreement had been reached with the Commonwealth.
"The reality is state governments can't do away with stamp duty without support from the federal government," he said.
"This is a moment for the federal government and state governments to work together to unlock economic opportunity for people going forward."
Mr Perrottet is due to meet with the Prime Minister on Friday.
He said he planned to prioritise discussions about health reform and labour shortages.
"If they want to kick in tax reform on the way through, I'm all in," he said.
After hitting record highs in January, Sydney housing values have fallen 1.5 per cent, according to CoreLogic data.
While the cost of buying a home in Australia's largest city remains 22.7 per cent above pre-COVID levels, the decline in value is getting bigger by the month, driven by rising interest rates.
The average mortgage in NSW is $786,035, according to data released by the Australian Bureau of Statistics, while the national average is $611,154.
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