Nsw Budget

EXPERT OBSERVER

This week, the NSW government announced almost A$500 million towards boosting the uptake of electric vehicles. In its new <a href="https://www.nsw.gov.au/initiative/nsw-governments-electric-vehicle-strategy">electric vehicle strategy</a>, the government will waive stamp duty for cars under $78,000, develop more charging infrastructure, offer rebates to 25,000 drivers, and more.

Given the transport sector is Australia&rsquo;s <a href="https://www.environment.gov.au/system/files/resources/6686d48f-3f9c-448d-a1b7-7e410fe4f376/files/nggi-quarterly-update-mar-2019.pdf">second-largest polluter</a>, it&rsquo;s a good thing Australian governments are starting to plan for a transition to electric vehicles (EVs).

But transitioning from cities full of petrol-guzzling vehicles to cities full of electric ones won&rsquo;t address all of the environmental and social problems associated with car dependence and mass manufacturing.

So, let&rsquo;s look at these problems in more detail, and why public transport really is the best way forward.

[smartcode_project:default project_id=7633 project_image_fid=32168]

<h2>Mounting disadvantage and health issues</h2>

EVs do have environmental advantages over conventional vehicles. In particular, they generate less carbon emissions during their lifetime. Of course, much of the emissions reductions will depend on how much electricity <a href="https://theconversation.com/climate-explained-the-environmental-footprint-of-electric-versus-fossil-cars-124762">comes from renewable sources</a>.

But carbon emissions are only one of the many problems associated with the dominance of private cars as a form of mobility in cities.

Let&rsquo;s start with a few of the social issues. This includes the huge amount of <a href="https://apo.org.au/sites/default/files/resource-files/2013-11/apo-nid59916.pdf">space devoted to car driving</a> and <a href="https://doi.org/10.1016/j.landusepol.2016.10.044">parking</a> in our neighbourhoods. This can <a href="https://theconversation.com/reclaiming-the-streets-we-all-can-have-a-say-in-the-new-normal-after-coronavirus-137703">crowd out other forms of land use</a>, including other more sustainable forms of mobility such as walking and cycling.

There are the financial and mental health costs of <a href="https://theconversation.com/australian-city-workers-average-commute-has-blown-out-to-66-minutes-a-day-how-does-yours-compare-120598">congestion</a>, as well, with Australian city workers spending, on average, 66 minutes getting to and from work each day. <a href="https://www.bitre.gov.au/statistics/safety">Injuries and fatalities on roads</a> are also increasing, and <a href="https://link.springer.com/article/10.1007/s11524-009-9433-9">inactivity and isolation</a> associated with driving can impact our physical health.

Car-dependent cities also contribute to <a href="https://trid.trb.org/view/1154961">disadvantage for people who don&rsquo;t have access to cars</a>, and uneven <a href="https://apo.org.au/node/449">financial vulnerability</a> associated with the high costs of car ownership and use.

Indeed, some of these problems could be made worse &mdash; for instance, subsidies for EVs could end up favouring wealthier people who can afford new cars.

<h2>Mining for resources</h2>

A mass global uptake of EVs will generate major environmental problems, too. Most concerning of these is the use of finite mineral resources required for their construction, and the environmental and labour conditions of their extraction.

This was recently highlighted in a <a href="https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions">recent report by the International Energy Agency</a>. As the agency&rsquo;s executive director Fatih Birol said, there&rsquo;s a

<blockquote>
looming mismatch between the world&rsquo;s strengthened climate ambitions and the availability of critical minerals that are essential to realising those ambitions.
</blockquote>

Minerals such as lithium, cobalt, nickel and copper are key ingredients required to make EVs.

As the report noted, EVs use double the amount of copper than conventional vehicles. EVs also require considerable amounts of lithium, cobalt and graphite that are hardly required at all for conventional vehicles. And it expects demand for lithium to grow 40-fold between 2020 and 2040, driven by EV production to meet climate targets.

<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" src="https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/408077/original/file-20210624-13-12t8z1b.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=3 2262w" /></a>

<figcaption>There are better ways to cut transport emissions than greater uptake of electric vehicles. Shutterstock</figcaption>
</figure>

There is <a href="https://www.afr.com/policy/energy-and-climate/speed-of-green-energy-shift-triggers-supply-alarm-20210506-p57pi5">considerable discussion</a> of Australia&rsquo;s natural advantage as a supplier of some of these minerals, as we have large reserves of lithium and rare-earth metals beneath parts of the continent.

But before governments and mining bodies rush to exploit these reserves, they need to ensure much more is done to avoid the injustices perpetrated against Traditional Owners and their lands and heritage. The recent appalling <a href="https://theconversation.com/rio-tinto-just-blasted-away-an-ancient-aboriginal-site-heres-why-that-was-allowed-139466">destruction at Juukan Gorge</a> by Rio Tinto&rsquo;s iron ore operation is just one example of this.

<a href="https://theconversation.com/critical-minerals-are-vital-for-renewable-energy-we-must-learn-to-mine-them-responsibly-131547">Mining also has its own environmental problems</a>, such as land clearing and associated biodiversity loss, the pollution and contaminants it produces, and <a href="https://theconversation.com/arent-we-in-a-drought-the-australian-black-coal-industry-uses-enough-water-for-over-5-million-people-137591">intensive water use</a>.

The conditions of extracting these critical minerals in other parts of the world are dire. There&rsquo;s the oppressive working conditions <a href="https://www.theguardian.com/global-development/2019/dec/18/how-the-race-for-cobalt-risks-turning-it-from-miracle-metal-to-deadly-chemical">in cobalt mining in the Democratic Republic of the Congo</a>, the conflict over <a href="https://www.theguardian.com/commentisfree/2021/jun/14/electric-cost-lithium-mining-decarbonasation-salt-flats-chile">Indigenous rights in Chile&rsquo;s lithium mining areas</a>, and environmental destruction associated with <a href="https://www.theguardian.com/environment/gallery/2015/apr/15/rare-earthenware-a-journey-to-the-toxic-source-of-luxury-goods">mining rare earth minerals in China</a>.

<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="Lithium mine with brine pools" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" src="https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=565&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=565&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/408075/original/file-20210624-21-1nlr7vh.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=565&amp;fit=crop&amp;dpr=3 2262w" /></a>

<figcaption>Mining for rare-earth metals such as lithium comes with enormous environmental impacts. Shutterstock</figcaption>
</figure>

<h2>Broadening ideas about transport</h2>

To focus on these problems is not to suggest the new policies on electric vehicles are unimportant, or that they don&rsquo;t stand to have some positive environmental impact.

The point is private EVs are not a solution to the combined challenges of reducing our urban environmental footprints and making better cities for all, and that they have their own problems.

Instead, we should develop a good mass public transport system with extensive and frequent coverage. Alongside urban development with a more even distribution of jobs, services and opportunities, investing in better public transport could reduce car dependence in our cities.

This would have a range of environmental and social benefits: making more space available for people instead of machines, extending the benefits of mobility to people who can&rsquo;t or don&rsquo;t drive, and reducing demand for finite minerals.

Even fossil-fuelled public transport has fewer emissions than conventional car travel. Data from the <a href="https://www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_chapter8.pdf">Intergovernmental Panel on Climate Change</a> shows the most fuel-efficient buses and trains generate less than half the carbon emissions per passenger kilometre of fuel-efficient cars. Of course, public transport powered by renewables will be even better.

<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="Trams on Swanston Street" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" src="https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=450&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=566&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=566&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/408072/original/file-20210624-15-1chlrge.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=566&amp;fit=crop&amp;dpr=3 2262w" /></a>

<figcaption>Melbourne&rsquo;s tram network is the biggest in the world. Shutterstock</figcaption>
</figure>

But as things stand, we are far from having such a city. The benefits of good public transport and public services are <a href="https://journals.sagepub.com/doi/pdf/10.1068/a140008g">unevenly distributed across our cities</a>.

In Sydney, for example, there are significant investments in new public transport infrastructure in some parts of the city, such as <a href="https://www.sydneymetro.info/west/project-overview">Metro West</a> and the recently completed North West Metro. There are <a href="https://www.smh.com.au/national/nsw/entire-nsw-rail-network-to-go-green-by-2025-smaller-ferries-to-go-electric-20210610-p58013.html">welcome commitments to reduce emissions</a> in that sector, too.

But we&rsquo;re a long way from planning new developments and redevelopments to make public transport a viable alternative to cars. The <a href="https://www.abc.net.au/news/2021-04-18/western-sydney-urban-sprawl-lesson-for-other-australian-cities/100072140">lack of public transport infrastructure in newly constructed, master-planned</a> estates on Sydney&rsquo;s urban fringe is the most glaring example.

Ultimately, it&rsquo;s important that a transition to electric vehicles doesn&rsquo;t dominate the discussion we need to have about urban transport.

Our challenge is to simultaneously reduce the carbon footprint of different forms of transport, while also thinking much more broadly about the sustainability and justice of the system of mobility that&rsquo;s so central to daily life in our cities.<img alt="The Conversation" height="1" src="https://counter.theconversation.com/content/163247/count.gif?distributor=republish-lightbox-basic" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" width="1" />

&nbsp;

This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/cramming-cities-full-of-electric-vehicles-means-were-still-depending-on-cars-and-thats-a-huge-problem-163247">original article</a>.

This week, the NSW government announced almost A$500 million towards boosting the uptake of electric vehicles

max.kwok_55688

Cramming cities full of electric vehicles means we’re still depending on cars — and that’s a huge problem

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GUEST OBSERVER 
The Premier and Treasurer should be applauded for the record infrastructure spend and strong fiscal outcome in the NSW State budget, but needed to do more to ensure the dollars matched the rhetoric on the Government’s housing affordability plan.
The NSW built environment is being transformed by the Berejiklian Government’s $73 billion infrastructure spend and future generations will benefit enormously from this investment.
But, in a budget that trumpets an upgraded surplus of $4.5 billion this year, $2.7 billion next – and solid surpluses in the out years – it is disappointing to find that half a billion dollars of new taxes could be imposed on the property industry to fund the extra infrastructure investment foreseen in the government’s housing affordability plan.
For the first time, today’s budget papers revealed the Government expects to collect more than half a billion dollars from the property industry over the next four years to fund state infrastructure needed to support increasing housing supply. 
At the end of the day extra taxes on housing supply means extra cost for buyers and more expensive home.
Surely with the state budget so far in the black this impost could be avoided.
Budget papers stated that the expansion of State Infrastructure Contribution Scheme (SICs) to 10 new areas announced in the recently released NSW Government housing affordability plan would raise an additional $545 million in revenue.  
These additional costs were on top of the announcement as part of the Government’s housing affordability plan that the Local Infrastructure Growth Scheme would be closed in 2020 with a potentially significant cost shift to the property industry of almost $400 million.
The budget confirms that with an increase of 9.6 per cent in residential property stamp duty revenue in 2016/17, the rivers of gold flowing from property taxes will fund essential services and programs next year and beyond.  It also now suggests that significant additional costs could be imposed on the supply of the average home. 
By 2020 that could add a billion dollars to the cost of delivering new homes in NSW. 
Sydney’s housing supply pipeline ground to a halt less than a decade ago under the burden of excessive infrastructure taxes, so widening the net risks a repeat of recent history. 
The Property Council is very keen to work with the NSW Government to ensure this scenario does not play out. 
The strong surplus delivered in Treasurer Perrottet’s first budget was a terrific result that should be applauded along with the $72.7 billion infrastructure spend.
On infrastructure investment, overall economic management and managing the bottom-line the Premier and the Treasurer score 10 out of 10 but on improving housing affordability there are still questions to be answered. 
The Government needs to take serious care to ensure that secondary policy decisions, such as the cost shifting the new SICs envisage, do not torpedo the primary policy objective of improving housing affordability in this state. 
It was pleasing to see that the budget papers confirm that wholly or majority owned companies who were positively contributing to housing supply in NSW would be exempt from the foreign investment taxes imposed in last year’s budget and that the exemption would be backdated to June last year.
These were a direct tax on housing supply and the Premier and the Treasurer are to be congratulated for acknowledging and fixing this so quickly.
Jane Fitzgerald is NSW Executive Director of the Property Council,and can be <a href="https://www.propertycouncil.com.au/" target="_blank">contacted here</a>.
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jchancellor-FAypfDUnLy

Strong NSW Budget should go further to tackle housing affordability crisis

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An absolutely wild $8.63 billion in stamp duty and land transfer duty receipts was raised over the year to September for the NSW Government, according for the Office of State Revenue (OSR). 
This is a totally unprecedented windfall for any state or territory in Australia.
Note how annual stamp duty receipts (red line) have remained above $8.6 billion even in the face of lower volumes (dotted blue line) this year.
Simply, this is due to higher dwelling prices in Sydney. 
<a href="/images/2016/12/NSW.jpg" target="_blank">Click to enlarge</a>
<h3 class="post-title entry-title"><img src="/images/2016/12/NSW.jpg" alt=""></h3>
<div id="post-body-5759172691898837383" class="post-body entry-content">
 <div> </div>
<div>NSW's budget surged into a massive $4.7 billion surplus in 2015-16.</div>
<div> </div>
<div>This result was miles ahead of forecasts and leaves the state Government with net debt of less than zero.</div>
<div> </div>
<div>The state government is now in a cash positive position for the first time ever.  </div>
<div> </div>
<div>To complete the virtuous circle, billions of these funds need to be rolled into urgently required infrastructure projects, not least to plug the hole that will be left by declining housing construction from 2018 forth. </div>
<div> </div>
<div>With commodity prices recovering, financial markets have priced in a change in the outlook, with Australia's 10 year government bond yield now sitting back at 2.37 percent, having slumped quite sharply since May. </div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
</div>
</div>
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pwargent-M4siyDbqQY

Stamped out NSW duties

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Taxing foreign buyers, rather than any new hand outs to first home buyers, was the focus of the NSW State Government budget.
Treasurer Gladys Berejiklian said she wanted to be "cautious" when dealing with the property market given revenue growth was under pressure.
The State Government is not tipping any Sydney property market correction, just a likely easing.
The state budget didn't raise or lower property taxes, other than the much anticipated new taxes on foreign investors.
All foreign property investors in NSW will be hit with a 4 percent stamp duty surcharge when buying homes and apartments and face an ongoing extra 0.75 per cent land tax surcharge on their residential property holdings. It will mostly affect off the plan purchasing.
Treasurer Gladys Berejiklian said she was confident the extra taxes would not deter foreign buyers given other states had similiar measure. It is likely to come from the estimated 6000 annual purchasers made by foreign buyers from today.
"Economists say it is an inelastic market," she said, when asked if there could be any impact on the state's revenue and international standing. It follows similiar taxes in Victoria and Queensland.
Berejiklian's second state budget anticipates a slowing in stamp duty revenues from record levels of revenue from home sales.
But they will still get $8,777 million in the next financial year, then $9,124 million in 2017-2018.
"I don't apologise for be very cautious when it comes to the property market," she said.
Residential transfer duties are tipped to grow at 4.4 percent annually over the next four years, "significantly more subdued than the pace seen in recent years."
There was 13.6 percent growth in the current budget year, and a stunning 40 percent growth when the boom was its most "robust" in 2013.
The NSW State Budget officially revealed an extra $835 million in stamp duty revenue will come from foreign buyers over the next four years.
It also expects $166 million in over the next four years from land tax on foreign investors.
NSW land tax revenues are forecast to rise at a faster rate than stamp duty revenues.
Land tax on investors will yield 8.1 percent higher revenue every year for the next four years, taking revenues from $3,136 million this year to $3,761 million in 2019-20..
The housing boom longevity is not being assumed by the NSW Treasury who suggest price growth was "moderating."
Transfer duty represents 29% of state government revenue. Land tax represents 11%.
The budget papers noted there was potential downside risk of a decline in the broader housing market.
On the upside was "the impact of low, and possibly even lower interest rates leading to stronger housing construction and consumer spending," the budget papers advised.  
There was no change to NSW first home buyer grants in the state budget with the January 2016 reduction from $15,000 to $10,000 triggering a smaller govenment outlay.
Just $96 million was spent on the first home new home scheme this year, down on the $115 million in the 2014-15 year. The first home exemptions and concessions are estimated to sit at $88 million next financial year.
"We are doing every thing we can for first home buyers," Berejiklian said.
"The key thing is to continue to focus on supply," she added noting that there had been record levels of 70,000 new home construction in the year to April.
"We are spending on infrastructure in local areas conducive to housing." 
She anticipated any of the much-speculated glut in new Sydney apartments would contribute to housing affordability by putting "downward pressure on prices." 
"I appreciate the challenges people go through to get into the market."
She also signalled her concern at the Federal Labor's negative gearing tax policy. 
"Without being over dramatic I am concerned that the election of a Shorten government will jeopardise conditions in NSW," she said.
This article was first published by The Daily Telegraph. 
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No new hand outs for first home buyers in NSW state budget

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Foreign property investors - individuals and corporations - in NSW will be hit with a 4 percent stamp duty surcharge when buying homes and apartments, the state budget confirmed.
Overseas investors will also cop an extra 0.75 per cent land tax surcharge on residential property.
Treasurer Gladys Berejiklian said she was confident the extra costs would not deter foreign buyers given other states had similiar measure.
NSW land tax revenues from investors are forecast to rise at a faster rate than stamp duty revenues over the next four years.
Land tax on investors will rise 8.1 percent higher revenue every year for the next four years, taking revenues from $3,136 million this year to $3,761 million in 2019-20..
The NSW Treasury suggested price growth was "moderating."
The New South Wales budget was released at midday on Tuesday, with much information pre-released. 
The State Government is not tipping any Sydney property market correction, just a likely easing.
The state budget didn't raise or lower property taxes, other than the previously canvassed new taxes on foreign investors.
 The NSW Treasurer Gladys Berejiklian's second state budget anticipates a slowing in stamp duty revenues from home sales.
They will still get $8,777 million in the next financial year, then $9,124 million in 2017-2018.
Residential transfer duties are tipped to rise at 4.4 percent annually over the next four years, "significantly more subdued than the pace see in recent years."
There was 13.6 percent growth in the current budget year, and a stunning 40 percent growth when the boom was its most robust in 2013.
The NSW State Budget officially revealed an extra $835 million extra stamp duty purchasing revenue will come from foreign buyers over the next four years.
It also expects $166 million is over the next four years from the new land tax on foreign investors.. 
NSW has not adjusted its stamp duty rates for three decades.
Transfer duty represents 29 percent of state government revenue. Land tax represents 11 percent.
The State Government revealed it is on track to deliver a record $3.4 billion surplus this financial year - and a $3.7 million in the next financial year.
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Foreign buyers to cop extra property taxation: NSW state budget 

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Not much was focus was given to first home buyers in the New South Wales Budget given Premier Gladys Berejiklian already announced her housing affordability package which officially starts July 1.
The <a href="https://www.urban.com.au/expert-insights/71588-not-much-for-first-home-buyers-in-nsw-budget" target="_blank">housing affordability package</a> outlined first home buyers will receive a number of exemptions following announcements made in the NSW Budget handed down this week.
First home buyers wont have to pay stamp duty on homes up to $650,000 from July.
Stamp duty will be reduced for properties valued between $650,000 and $800,000
Affordability measures also include a $10,000 grant for first home buyers who are building a house, given the total value of the house and land does not exceed $750,000.
A $10,000 grant is also available for existing properties valued up to $600,000.
Some 75,000 homes under construction will be completed in the next financial year in the budget. 
John McGrath said NSW State Budget stamp duty cuts and grants for young buyers will "ultimately <a href="https://www.urban.com.au/expert-insights/buying/71911-john-mcgrath-thinks-nsw-fhb-incentives-will-assist-in-balancing-property-market" target="_blank">raise property prices due to higher competition</a>."
But with Sydney and Melbourne at their peak pricing, McGrath suggests softening market conditions might balance out any price effect from greater first home buying activity.
'Especially if there are fewer investors in the market due to tighter lending restrictions," he said.
CoreLogic quoted recent ABS statistics showing that first home buyer activity in NSW hit a record low of 7.5 percent of new owner occupier mortgages last September and had increased only marginally since then to 8 percent in March this year.
"The long term average is 17 percent, so we’re a long way off that.
"I am concerned by the good initiative be funded largely by disincentivising investor activity and foreign ownership."
Jane Fitzgerald, NSW Executive Director of the Property Council said extra taxes on housing supply means <a href="https://www.urban.com.au/expert-insights/71990-strong-nsw-budget-should-go-further-to-tackle-housing-affordability-crisis" target="_blank">extra cost for buyers and more expensive homes</a>.
"The budget confirms that with an increase of 9.6 percent in residential property stamp duty revenue in 2016/17, the rivers of gold flowing from property taxes will fund essential services and programs next year and beyond," she said.  
"It also now suggests that significant additional costs could be imposed on the supply of the average home. 
"By 2020 that could add a billion dollars to the cost of delivering new homes in NSW. 
"Sydney’s housing supply pipeline ground to a halt less than a decade ago under the burden of excessive infrastructure taxes, so widening the net risks a repeat of recent history."
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NSW Budget incentives for first home buyers 

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There's not going to be much news for the first home buyers within Tuesday's NSW state government budget.
That's because the Premier Gladys Berejiklian has already announced her housing affordability package which officially starts July 1.
It was a valiant effort, but one I felt without convincing reasoning for the major policy of relief for the first home buyer.
It had the impression of the state government being seen to do something under the weight of all the recent unaffordability headlines.
The NSW Government’s solution for housing affordability <a href="https://www.urban.com.au/news/71127-nsw-government-to-roll-out-first-home-buyer-stamp-duty-caps" target="_blank">sees stamp duty abolished</a> on all houses and apartments up to $650,000 and reduced stamp duty relief for homes up to $800,000.
The valid fear is the government's well intentioned measures could prove counter-productive and lead to an increase in prices if first home buyers who hold off during June, then rush into the market in July.
Indeed the Starr Partners agency quickly noted vendors seeking to prise more of of their offerings by asking their estate agents to list their homes for slightly more, given that first home buyers will soon have more to spend. 
"When first home buyer grants were introduced a few years ago, we saw the same thing," Douglas Driscoll, the <a href="https://www.urban.com.au/expert-insights/71412-budget-failing-many-buyers-douglas-driscoll" target="_blank">Starr Partners chief noted</a>.
Though it's unlikely to impact too deeply in Sydney’s inner and middle-ring suburbs as just 20 per cent of detached housing stock and 33 per cent of unit stock fall within the $650,000 price threshold for stamp duty exemptions.
No suburbs within a 25km radius of the CBD have a median house price under $650,000, while just 38 have median unit prices under the figure which has not been indexed.
CoreLogic noted across in the entire Sydney metropolitan area just 25 per cent of dwelling sales over the past year were at a price of $650,000 or less.
The measure will encourage higher update of apartments given their pricing.
As Driscoll said the affordability crisis is a Sydney issue, not a state wide issue so regional NSW first home buyers are set to benefit the most from the measure.
It will take a big rise in first time buyer demand to prop up the overall housing market, filling any gap by fewer investors should they exit in the market.
There was an historic four percent low of NSW housing finance commitments to owner occupier first home buyers in recent calculations compared to 46 percent of lending to investors. 
Young first home buyers who don't wish to rush the market after July 1 will no doubt seek out the Federal Budget's simple superannuation top-up scheme that offers generous tax breaks.
The Federal Government's <a href="https://www.urban.com.au/news/70257-aidan-budget-followup" target="_blank">headline housing measure</a> also kicks in from July 1 when the first-home buyer can start to salary sacrifice into their super account.
Withdrawals for home purchasing, taxed at marginal tax rates less a 30 percent offset, will be allowed from 1 July 2018.
This article first appeared in The Daily Telegraph.
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Not much not already announced for first home buyers in NSW budget 

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GUEST OBSERVER
The NSW Budget demonstrates good economic management but the housing construction sector must continue to perform.
The main risk to the very positive NSW Budget is the outlook for the housing market.
Budget Paper No 1, Section 3.4 states ‘The largest risk to the forecasts, both to the upside and the downside, is the outlook for the housing market...’
The Budget indicates that stamp duty from the housing sector is $8.8 billion for 2015 – 16, $9.6 billion for 2016 – 17 and predicted to be $9.6 billion for 2017 – 18.
These are massive inputs to the Budget amounting to 31% of the state’s taxation revenue.
The Budget treads a delicate path between actions to help with housing affordability while continuing to boost housing supply.
The Urban Taskforce is concerned that there are a number of trends in the planning system that could upset this balance and slow down housing supply and therefore reduce stamp duty revenue.
The Budget initiatives on housing affordability are to help first home owners by eliminating or reducing stamp duty but the former Governor of the Reserve Bank, Glenn Stevens, has raised concerns that the saving may simply flow into higher house prices.
Glenn Stevens, in his report to the NSW Government on housing affordability, also cautioned another initiative in the NSW Budget where a levy is to be added on stamp duty for foreign investors as this could slow down housing supply.
Other risks to the forecasts for the housing market include the growing trend of Sydney councils of adding 10-15 percent levies on new housing on new housing developments to provide for affordable housing.
The Urban Taskforce believes this has the flow on effect of inflating the price of the other 90 percent of housing in the development, making these homes more costly and unaffordable to buy, or it will make projects unfeasible and therefore reduce supply.
The continuing confusion over local council amalgamations is also a risk to effective planning decisions being made.
The allocation of $14 million in the Budget and $40 million over the next 40 years to housing affordability should ensure that the Office of Housing Coordination and the Housing Delivery staff in the Department of Planning and Environment will be able to unlock key projects that are caught up in the planning system.
The $123 million allocated to the Parramatta Road Urban Amenity Improvement Program is a positive input to help drive the renewal of this corridor. 
The high investment in infrastructure of $72.7 billion over 4 years is an important initiative to underpin population growth in the state and particularly in Sydney. The investment in the Sydney Metro is particularly important.
The allocation of $12.5 million ($70.6 million over 4 years) to accelerate major project assessments is also very positive.
Overall the Budget demonstrates that NSW is being well managed in terms of finance. Most of the Budget items were released before the Treasurer’s speech.
The Urban Taskforce is keen to work with the NSW Government to ensure that the economic and jobs boost coming from a vibrant housing market continues into future years.
 
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Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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Positive NSW Budget- but housing construction a risk: Chris Johnson

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The NSW Budget indicates that the softening housing market has wiped out $10.6 Billion in expected stamp duty since 2017 but the Budget has no stimulation for the housing market.
The NSW Budget is a well -rounded document that continues the government’s roll out of city shaping infrastructure with $93 Billion committed to key projects.
The positive commitment to infrastructure is offset by a loss of $10.6 Billion in expected stamp duty due to the soft housing market.
The major commitment to infrastructure should underpin the urban growth across the state with a major focus on public transport growth that should occur around rail stations and in city centres.
The housing development industry is getting mixed signals from government on where development should occur and this is eroding confidence within the industry. 
Confusion exists over the ‘missing middle’ code, the future of spot rezoning, affordable housing levies and the impact of lifting the cap on infrastructure levies. 
Resolution is needed on these areas so that the current slow-down can be reversed.”
While housing construction is down the budget papers do point out that this is partly off-set by the large infrastructure construction commitment and a swing by some developers towards commercial office projects. 
Unfortunately for the budget these projects do not contribute stamp duty to the Treasury.
The Budget Statement (P 2-4) states that apartment commencements fell 22 per cent within the final quarter of 2018 and then states ‘Expectations for ongoing strong population growth and a stabilisation in house prices from late 2019 should encourage the commencement of more projects. 
How conditions in the housing market evolve over the next 12 months will be important for dwelling investment and household consumption.’ 
The budget included a proposal to drive reform of Federal Financial Relations with a review from a NSW perspective.
On major rail infrastructure projects the Sydney Metro West will receive $6.4 Billion over 4 years to fast track construction.
 These large rail infrastructure projects in Minister Andrew Constance’s portfolio are important locations for Sydney’s growth.
Western Sydney is a big winner in the budget with Stuart Ayres portfolio receiving $561 million for 2019-20 towards the Parramatta Light Rail, $404 million to upgrade the Northern Road, $286 million for Westmead Hospital, $196 million for Nepean Hospital. $108 million for Campbelltown Hospital.
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The Minister for Planning and Public Spaces, Rob Stokes, had smaller financial commitments including $113 million to create connected communities and $162 million to upgrade government-owned land and buy new land for public parklands as well as for increasing tree canopy across Sydney.
The NSW Budget demonstrates that the state’s finances are in a strong position but the reduction in expected stamp duty is warning signal that the housing market has problems in years ahead. 
The Urban Taskforce believes that the NSW Government needs to have a plan to ensuring the softening housing market is managed back into a strong position that handles population growth and continues the large number of jobs the industry generates.
CHRIS JOHNSON is the Urban Taskforce CEO
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