The passage of the Stamp Duty (Amendment) Bill 2025 by the Legislative Council marks a significant step in easing the financial burden on home buyers in the region. This legislative change, which has been welcomed by the Government, adjusts the maximum value of properties eligible for the $100 stamp duty from $3 million to $4 million. This adjustment is designed to provide relief to buyers of lower-value properties, a move that is expected to benefit a notable portion of the property market.
To understand the impact of this change, it’s essential to delve into the specifics. The $100 stamp duty is a flat rate applied to property transactions below a certain threshold. Previously, this threshold was set at $3 million, meaning that any property valued at or below this amount would incur a stamp duty of $100. However, with the new amendment, the threshold has been raised to $4 million. This means that properties valued at or below $4 million will now be subject to the $100 stamp duty, providing a significant cost reduction for buyers in this price range.
The Government’s decision to make this adjustment is based on the 2024-25 property transaction data, which indicates that about 15% of property transactions will benefit from this change. For example, if a property is valued at $3.5 million, the buyer would previously have had to pay a higher stamp duty rate. Now, with the threshold raised to $4 million, the buyer will only pay the $100 flat rate, significantly reducing their upfront costs.
This adjustment is particularly beneficial for first-time home buyers and those looking to purchase properties in the lower to mid-price range. The reduction in stamp duty can make a substantial difference in the overall affordability of a property, potentially allowing more individuals to enter the property market. For instance, a first-time buyer looking to purchase a $3.5 million property would save a considerable amount of money, making the purchase more feasible and less financially burdensome.
However, it’s important to note that this adjustment comes with a financial impact on the Government. The Government estimates that the measure will reduce its annual revenue by about $400 million. This reduction is a trade-off for the broader economic benefits of increased property market activity and the financial relief provided to home buyers. The Government has clearly prioritized the well-being of home buyers and the health of the property market over short-term revenue gains.
The legislation, which was passed by the Legislative Council, will be published in the Government Gazette on May 16. The relevant adjustment took effect at 11 am on February 26, 2025, under the Public Revenue Protection (Stamp Duty) Order 2025, which was gazetted on the same day. This means that the new stamp duty rates apply to all property transactions executed on or after February 26, 2025.
In summary, the passage of the Stamp Duty (Amendment) Bill 2025 is a positive development for the property market, particularly for buyers of lower to mid-value properties. By raising the threshold for the $100 stamp duty from $3 million to $4 million, the Government is providing much-needed financial relief to home buyers, which is expected to benefit about 15% of property transactions. While this adjustment will reduce government revenue by about $400 million annually, the long-term benefits of a more accessible and vibrant property market are anticipated to outweigh the short-term financial impact. For home buyers, this change represents a significant step towards making property ownership more achievable and less financially stressful.
