Going for growth but tax reform still needed

The NSW economy is geared for growth off the back of an infrastructure boom but will be better placed to sustain momentum through reforming state taxes, according the Property Council.

“This is a good budget that makes the right choices on the infrastructure needed to underpin the growth and liveability of our cities,” NSW Executive Director Glenn Byres said.

“NSW is also enjoying the benefits of surging stamp duty revenue and booming property markets – and the Government has correctly prioritised support for housing construction.

“Game-changing infrastructure projects are a central feature of the budget and will be accelerated once the proceeds from the poles and wires kick in.

“Commitment to a new rail station at Barangaroo will help consolidate our standing as a global city by servicing Australia’s largest urban renewal precinct and surrounding areas.

“The Government’s continued support for the housing construction sector is welcomed – evidenced by the $400 million allocation to the Housing Acceleration Fund.

“And the task of managing Sydney’s growth will be made easier through the funding made available to kickstart the Greater Sydney Commission.

“The Budget also makes clear though that NSW is highly dependent on stamp duty, which makes homes less affordable and acts as a ballooning cost to the economy.

“Stamp duty revenue has doubled in the past four years – rising from $3.6 billion in 2011-12 to $7.2 billion this year.

“It now accounts for over one quarter of all state tax revenue and is poised to top $8 billion in 2017-18.

“Stamp duty is a rollercoaster tax and while NSW is enjoying the highs right now thanks to the Government’s efforts to drive the economy, there is a need to guard against downside risks.

“We hope NSW continues to step up in the national tax reform debate and begin shifting away from inefficient taxes that hurt housing affordability and the economy.”

 Media contact: Glenn Byres | M 0419 695 435 | E [email protected]