Treasurer calls Help for Homes 'reheated failure'
LABOR'S announcement of a $60 million fund to reintroduce stamp duty deferral on first homes has been labelled a "reheated" failure by New South Wales Treasurer Andrew Constance.
The Help for Homes scheme would be available to all first-home buyers with a property valued up to $750,000. It would allow them to spread their stamp duty across five years with monthly payments.
"The stamp duty deferral scheme is just that, a deferral, which will have to be paid back as a $561 first-home buyer tax every month", Mr Constance said.
A similar policy was introduced under Labor Treasurer Michael Egan in the mid-1990s, but was later cancelled.
"Only 25% of first-time buyers are taking it. It is more costly to them than the discount option, and many who do take it find that they are creating a later financial trap, with almost 48% of them in arrears," Mr Egan said in 1998.