The troubled NSW state government has announced that it will ramp up property transaction fees in its mini-budget this week, in a move that the industry body says will have "a direct and negative" impact on the property market.
Premier Rees announced that the property transfer fee will double from $92 to $184, and land tax will increase by 25% on properties valued at more than $2.25m.
"This is a missed opportunity by the Rees Government to reinvigorate the stalling NSW economy," said Real Estate Institute of NSW president, Steve Martin.
"The real estate sector, already the highest taxed in Australia, is set to become even higher with the doubling of property transfer tax, and the increases announced in land tax. These increases will have a direct and negative effect on the market."
NSW tax payers will face an additional $3.6bn in taxes under Rees' new budget, which Martin said will make the state "even more unattractive" to investors and people looking to relocate to NSW.
"The knock-on effect of increased parking fees, higher childcare fees, increased bridge tolls and scrapping of the school travel program will only make this state the most expensive to live in, and that is before you even think about buying a house," Martin said.