Stamp duty rises by 9pc during 2014

Property tax is back on the political agenda after the New South Wales peak body called for reform ahead of the upcoming state election.

The Real Estate Institute of NSW reported that the state’s homeowners were hit by an average stamp duty bill of $33,490 in December 2014.

That marked a nine per cent increase on the $30,723 figure recorded the year before.

President Malcolm Gunning has called for the government to do something about stamp duty bracket creep, ahead of the state election on 28 March.

“Stamp duty was never designed to slug the average property owner at such high levels,” Mr Gunning said.

“It is time for the nonsense to stop. It is time for stamp duty rates to reflect the increases in the housing prices and it is time to give first home buyers a fair go.”

The two lowest stamp duty thresholds in NSW have been in place for 40 years, according to Mr Gunning.

The other thresholds, apart from the premium property duty, have been in place since 1986, he added.

“Given that housing is the single biggest financial investment most of us face in our life, it is important that the premier gives a clear indication of how his government is going to address this issue so that NSW voters can make an informed decision at the March election,” he said.

[Related: Real estate body threatens to form political party]

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