Major NSW parties battle it out for first homebuyers’ vote

Labor’s newly announced housing policy has sparked a fresh showdown with the Coalition, as both parties attempt to woo first homebuyers with competing policies ahead of March.

Labor’s flagship housing policy has been described as a “kick in the guts” for first homebuyers by the Coalition, as both parties trade blows over the platforms they‘ll take to the March election.

Fresh off their announcement they would abolish stamp duty for properties up to $800,000 for first homebuyers, NSW Labor on Monday revealed they’ll also fold a number of current housing offices into a new agency called ‘Homes NSW’ in a bid to slash red tape and speed up the construction of new social housing.

The party, if elected, will merge the Land and Housing Corporation (LAHC), Aboriginal Housing Office (AHO) and the Department of Communities and Justice’s housing arm into one entity to make the new agency.

Labor leader Chris Minns said the move would “ensure decisions are made, implemented and evaluated in the one place”.

“We need government that removes the red tape and hurdles that are stopping people from getting into homes,” he said.

NSW Labor Leader Chris Minns, announced the party’s plan to abolish or cut stamp duty for more first home buyers. Picture Gaye Gerard

It comes as both major parties prepare to campaign on their policies for first homebuyers, following Labor’s announcement it would axe stamp duty for homes up to $800,000, while properties worth up to $1m will be eligible for concessions.

Treasurer Matt Kean – whose government last year introduced a land tax enabling first homebuyers buying a home worth up to $1.5m to opt out of stamp duty and instead pay an ongoing annual fee worth $400 plus 0.3 per cent of the property’s land value – claimed the move would exclude thousands of prospective buyers.

Treasurer and Minister for Energy Matt Kean lashed out at the policy. Picture: David Swift

“Despite Labor’s con job, this is a kick in the guts for first home buyers across New South Wales,” he said.

“Chris Minns is forgetting thousands of first home buyers across the state.”

Mr Minns said modelling had suggested Labor’s policy meant 95 per cent of first homebuyers either wouldn’t pay any stamp duty or would pay a reduced rate.

“Our policy will help 95 per cent of first homebuyers in New South Wales, (Premier Dominic) Perrottet’s plan will put many young families on a permanent land tax merry go round where they will pay each every year for as long as they have that property,” he said.

Labor announced its first homebuyer election platform on Monday, saying more than 46,000 aspiring homeowners will pay low or no stamp duty on their first property if Labor is elected to government but the current option of land tax will once again be off the table to foot the bill.

SPEND MORE, PAY LESS, LAND TAX AXED: LABOR’S HOUSING POLICY REVEALED

Chris Minns has unveiled his long-awaited housing affordability policy after months of relentless attacks on the Coalition’s introduction of an optional land tax for first home buyers.

Under Labor, stamp duty will be abolished for people buying a home worth up to $800,000 and a concessional first-home buyer rate will be offered on properties up to a million.

The opposition’s policy mirrors the current stamp duty arrangements for first home buyers — but increases the cap from $650,000 to $800,000 and from $800,000 to one million respectively.

The raised caps will apply to both new and existing homes and the program’s expansion will be paid for by ending the Perrottet government’s land tax.

Opposition Leader Chris Minns. Picture: Richard Dobson

“I understand the stress of trying to purchase your first home. I want more singles, couples and families realising this dream,” Leader Chris Minns said.

“Under Labor any property purchased under $800,000 will have absolutely no stamp duty, and any property purchased up to $1 million will have a reduced rate.

The Labor plan will allow first home buyers to purchase properties under $800,000 without paying stamp duty.. NSW. Picture: Dylan Coker

“What I will not do is saddle first home buyers with a new, yearly tax bill that increases every year … The choice for first home buyers at the next election is clear.”

The party had campaigned against the introduction of the opt-in tax, dubbing it a “forever tax” and criticising Premier Dominic Perrottet for not taking the policy to the March election before it was passed through parliament late last year.

Labor said it has based the policy on independent modelling by the Parliamentary Budget Office which showed that within the first three years of the proposed changes, 27,700 first home buyers would have paid no stamp duty while an additional 18,800 would pay the discounted rate.

The modelling estimated the move will cost up to $722m over the forward estimates.

The party’s finance spokesman Daniel Mookhey said the policy was a “sensible” approach to housing affordability.

“When we have rising interest rates, rising cost of living, rising electricity prices, the last thing first home buyers need is a forever tax on their homes,” he said.

“This is a sensible proposal that will help almost all first home buyers get a foot into the property market.

The increased price caps were previously introduced by the state government during the pandemic, between August 2020 and July 2021, but only applied to new homes.