The New South Wales government has announced that homeowners who lost their houses due to the bushfires can waive their stamp duties when they buy a new home.
In a statement, Revenue NSW said a stamp duty relief of up to $55,000 will be available to bushfire victims. The relief will be available to those who intend to purchase in another location instead of just rebuilding. Under the grant, stamp duty will be waived for properties with values of up to $1.25m.
The exemption will also be available for those who already bought a house during the bushfire season.
The state government of Victoria also announced similar tax relief in January.
The Housing Industry Association (HIA) said that it welcomed the NSW government's move; however, it maintains its stance on stamp duty as a major hurdle for aspiring homeowners.
"Taxes such as stamp duty are a major impediment to people buying their own home and by significantly reducing these fees, people will be able to get into a new house sooner and hopefully get their lives back on track with as little angst as possible," said David Bare, executive director at HIA NSW.
Further details and information about the tax relief will be available in the next few days, according to Revenue NSW.
NSW Treasurer Dominic Perrottet pressured the federal government early last month to act on tax reforms, including scrapping the stamp duty.
"It's very hard to embark on reform if every two years we have a new prime minister in this country. We need political stability to provide a better reform for now and into the future," Perrottet said in a TV interview for Sky News.
Perrottet garnered support from several groups, including the Australian Taxpayers' Alliance.
"Australians have become disillusioned with the housing market thanks to a lack of affordability and the high cost of making transactions. With the exception of the Hong Kong, Sydneysiders cop the least affordable homes in the world," said Julia Kokic, a research associate at ATA.
