Labor to rescind Perrottet’s land tax reforms if they win election

Labor has committed to repealing Premier Dominic Perrottet’s signature land tax policy if it wins government, raising questions for first home buyers who want to purchase before March.

Labor has committed to repealing Premier Dominic Perrottet’s signature land tax policy if it wins government, raising questions for first home buyers who want to purchase before March next year.

The government is hopeful it has the numbers to pass the stamp duty reform bill in the upper house, meaning that from January 16, first home buyers would be able to choose land tax instead of paying up front stamp duty.

But Labor Leader Chris Minns has now vowed to scrap the legislation if he is elected.

“If we‘re elected in (to) government, we won’t continue with a land tax policy in NSW,” he said.

Mr Minns acknowledged that “transition arrangements” would need to be worked out for the ”small cohort” of people who would choose the land tax option between January and when the policy would be repealed.

The land tax legislation is set to go to a vote as early as next week. Labor and the crossbench voted last month to send the bill to a short upper house inquiry which is set to report back as early as Friday.

NSW Labor Leader Chris Minns has vowed to scrap any land tax legislation which is passed. Picture: NCA NewsWire

Under the proposal before parliament, buyers would be able to choose to pay land tax instead of stamp duty from January next year. Before then, first home owner who purchases a property after the bill is passed would be able to choose to pay land tax — but would have to pay stamp duty up front.

They would then be able to get their stamp duty refunded after January.

An upper house report on the land tax legislation could arrive by Friday. Picture: NCA Newswire

A spokesman for Mr Minns would not say what the “transitional arrangements” would be, but said Labor would announce them “if and when the Government’s land tax legislation passes”.

The Daily Telegraph understands that under Labor, the scheme could be grandfathered to prevent first home buyers who choose land tax being slugged twice.

But Treasurer Matt Kean accused Mr Minns of not being up front about his plans.

“If it’s repealed, he’d be legislating against choice — he’ll be making himself the Christmas Grinch by forcing young first homebuyers to suddenly pay tens of thousands of dollars in one hit that they can’t afford,” Mr Kean said.