“Our first position is to oppose this legislation and one of the reasons for that is you have to pay your annual land tax out of your salary, but it’s based on the value of your property.”
NSW Treasurer Matt Kean seized on Minns’ comments, accusing him of changing policy on the run.
“Chris Minns wants to legislate against choice, but can’t decide himself how, changing policy twice in one day,” he said.
“Sadly, in this case he’s actively looking to force first home buyers to pay a big upfront tax.”
Treasury modelling released this week by the government suggested it would take a first homebuyer who opted for an annual property fee on a $1.5 million apartment 63 years to reach the same value of stamp duty. For a unit purchased for $1.25 million, it would take 52 years.
Treasury estimated in June that half of all owner-occupiers sell their properties within 10.5 years while two-thirds of owner-occupiers sell their properties within 20 years.
First home buyers who opt in to the government’s property tax policy would pay an annual levy of $400 plus a 0.3 per cent tax on the value of their land.
Treasury officials have estimated about 6500 first homebuyers will take up the opportunity to pay a broad land tax each year, which equates to about 3.4 per cent of annual residential property sales.
Perrottet on Monday said the policy provided young people choice, and the ability to obtain “the great Australian dream”.