As the housing market of New South Wales enters a cooling phase, the government seems to have stopped establishing new measures to continue improving the state's affordability.
For many industry watchers, the recent budget had shortcomings in the way it addressed stamp duty rates, which have not been updated for more than three decades.
In a report on the Real Estate Conversation, Real Estate Insitute of New South Wales (REINSW) CEO Tim McKibbin said the decrease in the collection of stamp duties indicates that people are not buying and selling real estate.
“The Budget forecasts $6 billion less than previously budgeted in stamp duty over the next four years but an increase by $407.6 million in land tax from stronger forecasts for land values,” McKibbin said.
"Taxation is driving the market into the ground. It is fiscally naive, irresponsible and unconscionable not to reduce the stamp duty rates," he told the Real Estate Conversation.
McKibbin explained that cutting taxes will boost the number of transactions and will open the market to other buyers who would otherwise be priced out.
“The NSW government continues to overtax the property market and then says they will look at affordability - and then they can't understand why things aren’t improving," he said.
McKibbin urged the government to commence a thorough review of property taxes, particularly on how stamp duties are bracketed.
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