NSW Coalition unveils stamp duty extension plan under election pledge

NSW Premier Dominic Perrottet has announced his government would expand critical stamp duty reforms if re-elected in next month's election.

Under the plan, young home buyers will be able to continue avoid paying costly stamp duty on their first and second properties, and instead could pay an annual land tax fee.

Perrottet said the move would ensure first-home buyers would be able to move up the property ladder.

READ MORE: NSW election 2023: When, how and where do I vote?

"Stamp duty is a terrible tax," Perrottet said.

"I don't want anyone to give up in reaching the great Australian dream of owning their home and that is what this policy is all about."

The move will expand the First Home Buyer Choice (FHBC), which allows buyers to choose to pay annual land tax or a larger stamp duty sum when purchasing a house under $1.5 million.

Home owners can currently only hold two properties at any given time. If they buy a third home, they will need to pay stamp duty on the purchase price.

READ MORE: Pharmacists could soon renew scripts for the pill under election pledge

Perrottet said the scheme was a "game-changer" for first-home buyers, when he announced the plan last year.

"We know that stamp duty is a significant barrier to home ownership, particularly for young people and families trying to break into the market for the first time," Perrottet said.

"We're making it easier for first home buyers, many of whom are families, to reach the dream of home ownership sooner as well as give them more choice into the future.

Meanwhile, Labor has pledged to create a stamp duty concession for people purchasing their first property up to $800,000.

The party is also offering a discount rate for homes up to $1 million.

Sign up here to receive our daily newsletters and breaking news alerts, sent straight to your inbox.