There’s never been a better time to be a NSW treasurer

The NSW Government announced last week that it is debt free for the first time in 20 years and will have a 4.7 million dollar surplus for the 15/16 financial year.

The Property Council welcomed this news yet stated that it should be a trigger to reduce the costs that drive up house process and restrict supply. 

The Property Council outlined that 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.

Property council NSW Executive Director Jane Fitzgerald said that it was time to re-examine the cost imposts placed on the property industry.

“In NSW, the government collects more than $32,000 in stamp duty from a typical Sydney property. Twenty years ago it collected $4,685 from the same property – that’s a 7 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.”