NSW Treasurer Gladys Berejiklian’s announcement today that NSW is ‘back in the black’ having wiped out state debt for the first time in 20 years with a $4.7 billion surplus in the bank, and the Property Council of Australia are saying there has never been a better time to reduce the tax burden on people developing, selling and buying property in NSW.
Property Council NSW Executive Director Jane Fitzgerald welcomed today’s positive news and said it should be the trigger to reduce the costs that drive up housing prices, particularly state taxes like stamp duty.
“The Government’s own figures show they will reap $8.9 billion in stamp duty revenue in 2016-17. The stamp duty take from property has risen by a massive 13.3 per cent in one year – a big chunk of this paid by first home buyers trying to get a foot into the property market.”
“In NSW, the government collects more than $32,000 in stamp duty from a typical Sydney property. Ten years ago it collected $4,685 from the same property – that’s a 750 per cent increase. If you want to look at why Sydney house prices are sky high there’s a good place to start.”
“And, this year the Baird government has introduced a new tax on housing supply in NSW by imposing additional taxes on foreign investment in the residential market. Foreign investment delivers between 15 and 25 per cent of new houses in this state and this tax alone will stop many houses and apartments from getting built.”
“With no debt and a strong surplus, why not provide some relief to the thousands of Sydneysiders trying to buy a home for their family and scrap the new foreign investment tax and have a fair dinkum look at a stamp duty reduction plan.”