Half Your Salary to the Taxman? Sydney Homebuyers Feeling the Stamp Duty Squeeze

Sydney's housing market is already one of the hottest in the world, but now homebuyers are facing a new hurdle: paying half their salary just in stamp duty! This eye-watering cost is not only impacting individuals but also rippling through the entire market, according to new research.

Key Takeaways:

• Sydney homebuyers now pay 5.4 times more stamp duty than their counterparts in the early 1980s.
• The median-priced Sydney home requires a whopping $45,000 in stamp duty, equivalent to six months of average post-tax income.
• Soaring housing prices and outdated stamp duty brackets are creating a "bracket creep" effect, pushing more properties into higher tax rates.
• This heavy burden discourages first-home buyers and hinders downsizing or job-related relocations, impacting market fluidity.

The human cost: Imagine saving diligently for years, finally finding your dream home, only to realise half your salary vanishes to taxes. This reality puts homeownership further out of reach for many, particularly first-time buyers.

Market ripple effects: High stamp duty discourages downsizing, creating a logjam in the market. People stay put in larger homes they no longer need, limiting options for younger buyers and hindering mobility for job opportunities.

What's next? Calls for stamp duty reform are growing louder. With its significant impact on affordability and market dynamics, addressing this issue is crucial for a healthier Sydney housing market.