Stamp duty reform likely to go to inquiry

NSW crossbench MPs will move for an inquiry into the government’s pre-election push to reform stamp duty for first home buyers.

The Greens and One Nation are keen to scrutinise the proposed reforms, which would mean first-time buyers choosing between an annual land tax or the existing stamp duty lump sum.

Premier Dominic Perrottet argues the opt-in trial for the First Home Buyer Choice scheme means participants won’t be burdened by having to save such large deposits to get into the market.

The government wants a trial in place by January, although some members of the crossbench are uneasy about the size of the reforms, saying the parliament “should be treated with more respect”.

The proposal is vehemently opposed by Labor, which has labelled it a “forever tax”.

Labor argues it puts the state’s share of commonwealth GST revenue at risk and says it will cause rental and house prices to rise.

The reform is supported by One Nation’s Mark Latham, who told AAP he believes the choice should be available to all home buyers.

However Mr Latham is also part of a crossbench push for the reforms to be examined by an inquiry, along with the Greens and the Shooters, Fishers and Farmers.

Leader of the latter, Robert Borsak, told AAP the goal posts had been moved on the reforms and more analysis was needed.

“I don’t know what the legislation is about now – it’s changed a lot since Perrottet was treasurer,” he said.

“This is a new tax that the government keeps dressing up.”

The reform had the potential to become a long term new growth tax, which his party would reject, Mr Borsak  said.

Independent MP Justin Field told AAP he had not yet decided whether to support an inquiry, and that questions remained over whether the issue could be scrutinised within a tight window.

“Broadly I’m supportive of the reform but it is major reform,” he said.

“The parliament should be treated with more respect.

“My concern is that the government has watered this down to such an extent … that it may no longer achieve the shift from stamp duty to land tax they wanted to achieve.

“It affects so few people.”

Shadow Treasurer Daniel Mookhey told reporters on Tuesday the government’s late introduction of a cap on land tax payments indicated the policy was a failure.

The system was in danger of being overly complicated and hard to navigate, he said.

“First homebuyers are in danger of having to need a PhD in finance in order to properly assess whether or not this is in their interests,” he said.

– AAP