Iconic ex Labor PM Paul Keating backs in Dominic Perrottet’s land tax

Labor icon and former Prime Minister Paul Keating has sensationally backed in Dominic Perrottet on a plan NSW Labor leader Chris Minns is strongly opposed to.

Iconic Labor Prime Minister Paul Keating has thrown his support behind Dominic Perrottet’s stamp duty reform in bring in a proposed annual land tax.

State Labor has slammed the government’s proposal for an opt-in annual tax for first homebuyers as a “forever tax on the family home” and claimed that Mr Perrottet will expand the property to pensioners and families.

But Mr Keating said upfront stamp duty was “prohibitive” for first home buyers and a land tax would add “fluidity” to the tough first homebuyer market.

Former Prime Minister Paul Keating and NSW Premier Dominic Perrottet. Picture: NCA NewsWire / Nikki Short

He said the move — which was debated in parliament this week — was “positive”.

“Moving away from existing structured land taxes would make for much more fluidity and ease of movement. Which I don’t think is possible with very large sums which are now payable.”

He also praised NSW was leading the way in introducing a shared-equity scheme to allow key workers to buy a home with as little as 5 per cent for the deposit.

“Policemen, firemen, etc, aged care workers are able to live in the city where they work,” he said.

Mr Keating described Mr Perrottet as a leader with “civic conscience” and support the NSW leader in his long-running disdain of the Cahill Expressway — calling it an “eyesore”.

Responding to the former Prime Minister’s comments, Labor leader Chris Minns refused to take it as a criticism, saying Mr Keating’s comments were “more about market efficiency and fluidity in the marketplace”.

Labor leader Chris Minns has refused to take Mr Keating’s comments as a criticism.

”Mr Keating’s praise would only apply if the government’s ultimate aim was to introduce a property tax for most or all households in New South Wales. And if the government is proposing that I think they should be upfront of people in New South Wales and say that’s their ultimate aim,” he said.

”Wages will have to pay that annual tax wages for the last decade have been flat or declining in real terms, asset prices, housing in particular, have doubled over the same period of time. You have to pay your property tax out of your wages are set to climbing astronomically certainly have a last 10 years, and I’m concerned about the affordability for families in the marketplace.”