These 10 Sydney suburbs are the biggest contributors to the NSW government's stamp duty windfall

The NSW government has had its hand out collecting property taxes. (Photo by Brendon Thorne/Getty Images)
  • Sydney property buyers paid more than $7 billion worth of stamp duty in the 2016/17 financial year.
  • Data obtained by the ABC shows more than $1 billion of that was contributed by just 10 suburbs.
  • While last year marked a record high for property-related taxes in NSW, the figures are likely to fall this year amid the housing market downturn.

A key feature of Australia’s $US7 trillion housing market is stamp duty — a tax paid to state governments upon the purchase of a new home.

In particular, the governments of NSW and Victoria have been the beneficiaries of a stamp-duty windfall in recent years amid the property boom in Australia’s east coast capitals.

And data obtained by the ABC via a Freedom of Information Request shows which areas in Sydney have been the biggest contributors to the government’s coffers.

The figures are split up by postcode and relate to the 2016/17 financial year. They show that of the almost $7 billion in total stamp duty paid, over $1 billion of that was collected from just 10 areas.

Here’s the list:

  • Sydney CBD: $345m
  • St Leonards: $134m
  • Kellyville: $119m
  • Mosman: $109m
  • North Ryde: $106m
  • Newington: $99.7m
  • Riverstone: $94.2m
  • Blacktown: $89.7m
  • Waterloo: $88.3m
  • Parramatta: $86.3m

The amount of stamp duty paid is derived partly from the value of a home, but it’s also a reflection of how much property turnover there is in a given suburb.

The Sydney CBD is by far the biggest contributor, indicating that turnover remained high for city-based properties.

And despite rising home values in high-end eastern suburbs locations, the results suggest that properties in those areas remain more tightly held.

Instead, over half of the top 10 postcodes for stamp duty contributions were out west, driven by demand for bigger family-size homes in Sydney’s western heartland.

But when it comes to land tax on existing properties, the high-end eastern suburbs favoured by wealthy investors remained the biggest contributors:

  • Woollahra: $67.4m
  • Randwick: $67.3m
  • Waverley: $62.5m
  • City of Sydney: $53.8m
  • The Hills Shire: $53.2m

Data for land tax is collated by local government areas, rather than suburban postcodes.

The figures show that between stamp duty, land tax and other fees, the NSW government collected a windfall of $13.8 billion.

Data from CoreLogic indicates that property-related taxes contributed 52.8% of state government revenues last financial year — a new record high.

While the data provides an interesting breakdown on property taxes, the figures are for the 2016/17 year which coincided with the peak of the latest housing boom.

Since then, a market slowdown has seen price falls of around 4% in the Sydney market. Auction clearance rates have also been in decline, which indicates a reduced transaction volume.

“As a result, we would expect over the current financial year that stamp duty revenue will fall and, as a result, so will property taxation revenue,” CoreLogic’s Cameron Kusher said last month.

You can read the full article from the ABC here.

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