NSW Budget provides the lifeline we need to support economic recovery of the state
The Property Council of Australia has welcomed NSW Treasurer Dominic Perrottet’s bold plan to phase out stamp duty delivered as part of today’s NSW budget, as well as its strong focus on infrastructure, job creation and a targeted stimulus package.
A centrepiece of this year’s Budget includes the Treasurer’s focus on tax reform with a Consultation Paper released ‘Buying in NSW, Building a Future’ which outlines a policy framework for proposed reforms to property taxes, stamp duty and land tax in NSW.
“Stamp duty is an incredibly harmful tax and the Property Council welcomes the NSW Government’s intention to phase this out for the good of the wider economy,” Property Council NSW Executive Director Jane Fitzgerald said today.
“The reform model proposed by the Government has many strengths and avoids mistakes of other jurisdictions.
“Property Council looks forward to working with the NSW Government on this initiative and appreciates the government’s commitment to consultation on this very important reform.”
A deficit of $16 billion is expected in 2020-21, with forecast revenues down $25 billion over the next five years, which should then see a surplus return in 2024/25 with key measures put into place to support a strong economic recovery over the next five years.
“There is no doubt that this year has been one of the most challenging on a number of fronts, for the property industry, for the community and for all businesses. Treasurer Perrottet’s budget delivers on the Government’s commitment to provide targeted stimulus measures to fast track infrastructure projects and increase jobs to support the economic recovery of the state.
“Job creation is front and centre for this Budget and it provides a good mix of investment and funding to support this, and to respond to the significant economic shocks as a result of the COVID-19 pandemic. Getting people returned to the workforce and back into our CBDs is key - $2.8 billion in payroll tax cuts will be a welcomed initiative for all businesses.
“The Government has also provided a strong total infrastructure spend of $107.1 billion over four years which will also help to support job creation, with key projects such as the Sydney Metro West and Metro Western Sydney Airport driving growth in Western Sydney and further investment into the NSW economy.
“Further funding for planning reforms is also warmly welcomed, with major funding for key projects such as the Planning Reform Action Plan, Planning Delivery Unit and ePlanning to simplify and fast track planning decisions being critical for the property industry to continue supporting growth, housing supply and infrastructure for our communities.”
Property Council also welcomes the $27 million investment over four years for the Office of the Building Commissioner to continue carrying out important work to restore confidence and trust in build quality and the construction industry more generally.
“We know that building quality is a critical issue for the industry and the community so further investment to support construction and an increase in the number of dedicated compliance officers to focus on residential apartment buildings is a positive step.
“Providing a clear and credible plan to deal with the issue of flammable cladding on multiunit residential properties is also welcomed with the introduction of ‘Project Remediate’ and no additional levies being introduced, will give the property industry and owners further confidence and certainty.”
“We congratulate the Treasurer on handing down his fourth budget and look forward to continuing to work with the NSW Government in the year ahead.”
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