Dominic Perrottet’s government is taking its first step towards introducing a broad-based land tax, with its forever tax for first-home buyers starting today.
It comes less than a week after the Premier refused to rule out further expanding his land tax to other homeowners if he is re-elected in March.
By contrast a Minns Government is promising not to introduce a broad-based land tax. Instead, 46,000 future homeowners will pay no or little stamp duty under NSW Labor’s fresh plan to help first home buyers.
Labor’s plan is targeted and simple to understand. First homebuyers buying a home worth up to $800,000 will pay no tax whatsoever. Those purchasing a property up to $1,000,000 will pay a discounted rate.
NSW Shadow Treasurer Daniel Mookhey claimed the prize for the party with the better plan.
“With real wages falling, interest rates rising, and tolls exploding, an annual land tax payment will further punish household budgets.
“We have the better plan. Tens of thousands of first home buyers get a tax cut. No one will need to worry about us imposing an annual land tax on their home, which could last forever.
Premier Perrottet has spent years campaigning relentlessly to introduce a broad-based land tax. When announcing his tax on first-home buyers, he referred to his reform as ‘the start’. He then said ‘reform is a journey’, and finished by saying ‘it’s pretty clear where I want to get to.’[1]
In August the Premier told media outlets that he’d like to extend his tax to pensioners. When he was pressed by Labor in Parliament to guarantee that he will not make pensioners pay the land tax, Mr Perrottet said ‘We might even do it before.. [the election].”[2]
As Treasurer, when he first signalled the introduction of a land tax, Mr Perrottet said: “What we’d like to see is about 80 percent of properties across the state have access to this scheme.” [3] And “we are proposing that all properties move to a property tax eventually.”[4]
Mr Mookhey said:
“The Premier will say whatever he must to get through the election. But if he re-elected – he will charge full-steam ahead and introduce a broad-based land tax.
“If Mr Perrottet is re-elected in March, he will see it as a mandate to introduce the broad based land tax he’s spent years campaigning for.
“The only way to stop Mr Perrottet from going further is for New South Wales to vote his divided government out and give NSW the fresh start the state deserves.”
[1] Dominic Perrottet Press Conference, 14 June 2022.
[2] NSW Parliamentary Hansard, Budget Esimates, 7 September 2022.
[3] Dominic Perrottet Press Conference, 17 November 2020.
[4] Dominic Perrottet quoted in online article, Daily Telegraph, 18 November 2020.
DANIEL MOOKHEY MLC
NSW SHADOW TREASURER
