NSW Budget fails home buyers: REINSW
EXPERT OBSERVATION
It is a huge disappointment that the NSW Government has failed to address stamp duty rates in today’s budget, which have been left unchanged for the last 32 years.
The government collected $8.673 billion in stamp duty, $1 billion less than 2016-17.
The number of transactions has fallen and will continue to fall because people aren’t buying and selling real estate.
The Budget forecasts $6 billion less than previously budgeted in stamp duty over the next four years but an increase by $407.6 million in land tax from stronger forecasts for land values.
Taxation is driving the market into the ground. It is fiscally naive, irresponsible and unconscionable not to reduce the stamp duty rates.
There is empirical evidence that shows reducing taxation will increase the number of transactions and therefore it is a win – win. Government will get additional revenue and the consumer will get a more affordable product.
The government can save a lot of time and money consulting the community on how to solve housing affordability - the answer to affordability is increasing supply and reducing property taxes.
After it has all been said and done there has been more that has been said than done. We need action not words.
Albert Einstein said ‘insanity is doing the same thing over and over again and expecting different results’. Persisting with outdated stamp duty rates and impediments to supply will not improve affordability.
Government continues to over tax the property market and then says they will look at affordability, and then don’t understand why things aren’t improving.
It’s time to conduct a full review of property taxes, in particular stamp duty brackets, and make a real change.
Tim McKibbin is the CEO of REINSW.
