NSW Labor accuses Dominic Perrottet of planning to introduce broad ‘forever tax’ as Premier hails ‘choice’ for homebuyers

With three months left until the New South Wales election, battle lines have already been formed around Premier Dominic Perrottet’s push to axe stamp duty, with Labor arguing the government will push ahead with a “broad-based land tax”.

Speaking with the Daily Telegraph on Thursday, Mr Perrottet seemingly abandoned his hopes to eventually cut stamp duty all together.

The Premier said the government was not considering expanding its land tax policy introduced last year, which would allow first home buyers the choice between the two options for properties valued at up to $1.5 million.

“If there are future reforms, it will all be about choice,” Mr Perrottet said.

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“I sat in groups and spoke to people and got feedback in relation so it really honed and refined my thinking, and where I’ve landed is it’s all about choice.”

“If you give people choice, then it’s very difficult for people to say that there’s a problem with it.”

Mr Perrottet has eyed off replacing stamp duty – a one off tax levied at 4.5 per cent of the property’s value – with a land tax since 2019.

Under the government’s proposal, households would have the choice of stamp duty or an annual $400 plus about 0.3 per cent of the property’s value.

But Labor has steadfastly come out against the major reform, committing to scrapping the changes if its elected on March 25.

Shadow treasurer Daniel Mookhey said despite the Premier’s platitudes about choice between the two revenue-making schemes, the Coalition would still push ahead with its “forever tax” if it won the election.

“Leopards don’t change their spots. The Premier has been obsessed with introducing a land tax for years,” Mr Mookhey said in a statement on Thursday.

“His plan is to say what he must to get through the election, before he charges full-steam ahead and introduces a broad-based land tax.

“The fact that Mr Perrottet has again refused to rule-out extending his land tax even further shows that he will never give up on the plan he spent years fighting for.”

The opposition announced its own first home buyers’ scheme on Monday, pledging to axe stamp duty for properties valued up to $800,000 while providing a sliding discount for dwellings priced at up to $1 million.

Labor argues the scheme will cover 27,700 first home buyers within the first three years and will see 95 per cent pay no or little tax.

But Treasurer Matt Kean blasted the proposal as a “kick in the guts” to the state’s aspiring property owners and argued the scheme would shut them out of the market given the state’s average land value sat at more than $1.2 million.

“It’s only (Opposition Leader) Chris Minns and Labor defending the most unfair and unpopular tax in the nation – and that is stamp duty,” Mr Kean said.

“What Chris Minns’s policy does is exclude people in purchasing property in a whole range of suburbs for those median house prices.”

Under the government’s existing plan, homeowners would not pay the equivalent stamp duty price for almost 30 years on a property valued at $1 million if they chose to pay the annual land tax.

Stamp duty currently contributes to a quarter of the state’s revenue but has been widely criticised as outdated, with former Commonwealth treasury secretary Ken Henry labelling it the “worst” tax levied across the country.