Property purchases drive state government surplus: Gareth Aird
Property ObserverAugust 5, 2015
The New South Wales property market has driven the state into a large operating surplus, with stamp duty revenue on property transfers forecast to have grown 20.6% in 2014/15 and elected to grow a further 7.6% in 2015/16.
According to Commonwealth Bank economist Gareth Aird, property transaction related revenue typically, around 10% of total government revenue, has significantly boosted some state budgets.
Like NSW, Victoria is anticipating a surplus in 2015/16 which, if realised, will mean that it extends its run of surpluses that began in the mid-1990s.
Strong growth in property transfer duty revenue is offsetting some weakness in income and consumption-based taxes such as payroll and gambling.
