Invest
Should stamp duty go?
The NSW state government is preparing a raft of tax reforms, including payroll and stamp duty relief, as the government tries to reignite the local economy.
Should stamp duty go?
The NSW state government is preparing a raft of tax reforms, including payroll and stamp duty relief, as the government tries to reignite the local economy.
While the outbreak of the pandemic has punched a hole in the economy, NSW treasurer Dominic Perrottet on Saturday laid out a plan to scrap what he described as inefficient taxes.
Mr Perrottet told the media that: “We are not going to tax our way back into prosperity.”
The treasurer said that stamp duty was at the top of his hit list and his plan will also focus on productivity, deregulation, digitisation, trade and investment.
The calls to remove stamp duty is widely supported by industry experts, with REINSW saying that while there is no such thing as good tax, it is universally accepted that a broad-based tax system lessens the impact on economic activity.
REINSW CEO Tim McKibbin said “the acquisition of goods and services subjected to the impost of the goods and services tax (GST) – a broad-based tax – rarely if ever influences the consumer’s purchasing decision. By contrast, transfer (stamp) duty is a very narrow-based tax and is a significant cost attaching to the acquisition of a property”.
Upside Realty CEO and founder Adam Rigby believes the tax is having an impact on older Australians who are forced to live in homes no longer suitable for their stage of life because of fears and uncertainty about the cost of selling.
“This is one person living in an otherwise empty six-bedroom house – there are more than 100,000 underused houses in NSW and Victoria alone,” Mr Rigby said.
“The increased expenses associated with running these homes is dangerously eating into retirement funds and locking families and first home buyers out of the market.”
The latest ABS data showed that 49 percent of Australians are living in underutilised dwellings – in houses with two or more empty bedrooms. A number which Mr Rigby said increased throughout the property downturn last year and has now spiked with the drop in sales volume led by the COVID-19 outbreak.
“In the last month, we have seen a 28.7 percent decrease in sales volume compared to 2019, a year which was already substantially down, compared to previous years.”
“This stalemate has been going on for the last 18 months or more.”
“Seniors keep delaying a downsize because they are unsure about the market, and they know they will be slugged with a huge tax.”
About the author
About the author
Property
Are we nearing another property boom?
There’s a secret to knowing when the property cycle will take its next turn, and it's not as far away as some may think, according to a property expert. ...Read more
Property
Hot Property: Biggest headlines this week
Based off anecdotal accounts, the property industry is gearing up for a strong spring season: Here are the biggest property stories from this week. ...Read more
Property
Ace a rental application in 5 simple steps
In many areas across Australia, the rental market is becoming increasingly competitive, so how do you ensure your application will stand out? ...Read more
Property
Population falls could see Australia with 232,000 vacant dwellings
The shutdown of international borders could cut demand for Australian housing by as much as 232,000 dwellings over the next three years, according to research. ...Read more
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
Property
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
Property
Are we nearing another property boom?
There’s a secret to knowing when the property cycle will take its next turn, and it's not as far away as some may think, according to a property expert. ...Read more
Property
Hot Property: Biggest headlines this week
Based off anecdotal accounts, the property industry is gearing up for a strong spring season: Here are the biggest property stories from this week. ...Read more
Property
Ace a rental application in 5 simple steps
In many areas across Australia, the rental market is becoming increasingly competitive, so how do you ensure your application will stand out? ...Read more
Property
Population falls could see Australia with 232,000 vacant dwellings
The shutdown of international borders could cut demand for Australian housing by as much as 232,000 dwellings over the next three years, according to research. ...Read more
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
Property
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
