Shadow Finance Minister Bob Richards has claimed that changes to stamp duty approved by MPs this week are a "consequence of a Budget out of control".

The Opposition MP, speaking after Finance Minister Paula Cox presented the Stamp Duties Amendment Act 2008 to the House of Assembly on Monday, said: "The Minister has had to cast her net wide to pick up sums of money in various areas and that is manifested in this legislation."

Ms Cox told the House the amended law constituted a "revenue raising measure" in support of this year's Budget.

The Act changes the various rates of stamp duty payable on the conveyance or transfer of property and land on the Island.

The new tiered rate structure — which will apply after April 1 — is:

* two percent on the first $100,000 or any part thereof;

* three percent on the $400,000 or any part thereof;

* four percent on the next $500,000 or any part thereof;

* six percent on the next $500,000 where the value is more than $1 million but not exceeding $1.5 million, and

* seven percent on any remaining value or amount.

Ms Cox said: "Most first-time home purchasers seek properties valued at less than $1 million.

"Home buyers in this segment of the housing market will have the full benefit of the reduction in the rate from 2.5 per cent to two percent in the lowest tier.

"For properties that sell for more than $1 million the rate of stamp tax will be higher. The net yield from these rate changes is estimated at $2 million."

The Minister explained that the new legislation also clarified the fact that a commonwealth share certificate does not include a share certificate of a local company.

Mr. Richards said the Minister had "cut her cloth cleverly" by providing a decrease in duty on those "rare" properties costing less than $1 million and increasing it on the majority of all other homes.