The New South Wales upper house has urged the state’s chief commissioner of revenue to seek a judicial review of the state’s stamp duty arrangements amid concerns that property buyers may have been overcharged by billions of dollars in recent years.

Late Wednesday, members of the upper house passed a motion requesting that Phil Minns, the chief commissioner of state revenue and uncle to Premier Chris Minns, present a stated case to the NSW Supreme Court. The motion aims to clarify the legality of the current stamp duty indexation method and ensure taxpayers are not unfairly burdened.

Opposition Treasury spokesman Scott Farlow, who introduced the motion, said the government should refer the issue to the Supreme Court to resolve the matter definitively. “If the legal advice the government relies upon is correct, then there should be no objection to seeking the court’s opinion and providing taxpayers with certainty,” Farlow said. He argued that the government’s current stance effectively challenges taxpayers to pursue legal action individually instead of proactively addressing the issue.

The call for a judicial examination has also been supported by property industry representatives. Tim McKibbin, chief executive of the Real Estate Institute of NSW, said the matter will ultimately be decided by the courts. He warned that postponing a formal government review in favor of prolonged debate could cast the government in an unfavorable light.

Central to the controversy is a legislative change implemented in 2022 involving inflation indexation of stamp duty brackets. The change adjusted how inflation was applied to property transaction thresholds across subsequent years, shifting from applying inflation annually on the most recent year’s brackets to a method applying inflation only to the 2019 brackets. This adjustment followed intervention by the chief commissioner.

Experts have raised concerns that this recalibration could have resulted in property buyers being overcharged by more than $1 billion since 2022. The opposition has pledged to review the legislation should it win the upcoming state election, while property groups have also called for an official probe into the current stamp duty framework.

Despite these pressures, NSW Finance Minister Courtney Houssos maintained at a recent budget estimates hearing that no review would be conducted. She expressed confidence in Revenue NSW’s approach, stating there was firm legal advice supporting the existing indexation method.

The dispute highlights ongoing tensions over state revenue policies and their impact on the property market, with both sides urging transparency and resolution through legal or legislative channels.