Tuesday 18 June 2024
MEDIA RELEASE
NSW Budget: Property sector faces $6.38 billion Budget bill
The Property Council of Australia has warned the NSW Government’s second State Budget will leave the NSW property sector facing a massive $6.38 billion cost hike in the middle of a housing and construction crisis.
Property Council NSW Executive Director Katie Stevenson said a $4.7 billion cost shift of the Emergency Services Levy (ESL) from insurers to property owners, combined with a $1.68 billion stealth tax hike on land tax and foreign surcharges would cripple the sector’s potential to deliver urgently needed housing.
“This Budget bombshell beggars belief,” Ms Stevenson said.
“It’s a massive cost for property owners and developers facing a once-in-a-generation housing supply and affordability crisis, a critical shortage of industrial land and low vacancy rates, and an already challenging development cost environment.
“The property sector is already responsible for 18 per cent of Australia’s tax receipts – this additional ESL burden, along with increases to land tax and foreign surcharges will only serve to impact the feasibility of the delivery of Housing Accord targets,” Ms Stevenson said.
Ms Stevenson said the cost and tax hikes took the edge off a broadly positive focus on housing for those most in need and on other Budget measures.
“While the government’s record investment in social housing must be applauded, these additional costs add to the pressures facing the property and construction industry.
“Spending on social housing will help to drive urban renewal and provide stimulus, and the property sector looks forward to playing a role as a key partner in the delivery of these new homes.
“It’s also good to see Budget action on barriers to finance and feasibility in direct response to the calls we have made, and on home builds for essential workers, investment in the planning system, and infrastructure spending for the delivery of new homes in regional NSW and in Western Sydney.
“But now is not the time to increase property costs or cut off access to vital investment in housing. Subjecting more Mum and Dad investors to increased land taxes, making NSW lead the national pack on foreign investor surcharges, and loading the sector up with more costs at this critical time only threatens, rather than supports, more housing delivery,” Ms Stevenson said.
ENDS
Media contact: Andrew Parkinson | 0404 615 596 | [email protected]