Stamp duty waived for NSW bushfire victims, with fine print

NSW has followed Victoria’s lead for those whose homes burned, but stopped short on similar exemptions for burnt-out vehicles.

A burnt-out house at Cobargo. NSW people who lost their homes won’t have to pay stamp duty if they decide to buy a new home instead of rebuilding, the NSW Government has announced. Picture: Saeed Khan/AFP

The NSW Government will exempt bushfire victims from paying stamp duty if they decide to buy a new home instead of rebuilding, a policy that mirrors a Victorian government scheme announced two months ago but which stops short of providing the same assistance. 

Deputy Premier John Barilaro, the minister responsible for disaster recovery, released details of the policy on Tuesday at NSW Parliament alongside Treasurer Dominic Perrottet and Bega MP Andrew Constance.

Up to 30 per cent of people who lost their homes are expected to apply for the stamp duty exemption, according to government estimates. The exemption will be capped at $55,000, which Mr Perrottet said was roughly the cost that would normally be paid on a home worth $1.25 million.

The exemptions are expected to draw down government revenue by between $5 million and $15 million, Mr Perrottet added.

But the policy stops short of covering burnt out cars, trucks and farming vehicles, which the Victorian government exempted from transfer duty if they were valued above $50,000.

That policy, announced in January, also halved payroll tax for employers in bushfire-affected regions, and was backdated to July 2019.

The NSW policy provides no relief for vehicle purchases or payroll tax.

Mr Barilaro said the scale of the damage in Victoria was far less than in NSW, where 2,448 homes were destroyed and 10,000 properties were impacted. More than $1 billion has already been set aside in support of communities.

“This is not a game of envy,” he said, when asked why the NSW policy did not go as far as the Victorian model.

He said the priority in NSW remains the continuing clean-up effort, which Victoria did not have to manage to the same extent. “Each state will make a number of announcements, but I’m always happy to look at other opportunities.”

Mr Perrottet said the stamp duty package would be eligible for two years, and anyone who had already paid duty on a home would be able to apply for a refund.

“This will allow people to weigh-up their options, and if they do decide to purchase a replacement home, they can do so without the added financial burden and stress of paying stamp duty,” he said.