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
Millennials believe first home buyers need more support
Australia’s up-and-comers in the housing market say more needs to be done to slow rising house prices. ...Read more
Property
3 in 4 borrowers in trouble are in lockdown: ANZ
Despite offering support, ANZ said freezing home loan repayments will be the last resort, as three in four requests for support stem from NSW. ...Read more
Property
RBA gives APRA’s use of macro tools a tick of approval
Ahead of an expected move to impose tougher lending rules on the banks, the Reserve Bank has looked into previous attempts by APRA to cool the housing market. ...Read more
Property
Federal incentives are driving more first home buyers into the market
While property prices continue to grow, new research suggests that the government’s current crop of first home buyer incentives is having an impact on this segment of the market. ...Read more
Property
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Property
Millennials believe first home buyers need more support
Australia’s up-and-comers in the housing market say more needs to be done to slow rising house prices. ...Read more
Property
3 in 4 borrowers in trouble are in lockdown: ANZ
Despite offering support, ANZ said freezing home loan repayments will be the last resort, as three in four requests for support stem from NSW. ...Read more
Property
RBA gives APRA’s use of macro tools a tick of approval
Ahead of an expected move to impose tougher lending rules on the banks, the Reserve Bank has looked into previous attempts by APRA to cool the housing market. ...Read more
Property
Federal incentives are driving more first home buyers into the market
While property prices continue to grow, new research suggests that the government’s current crop of first home buyer incentives is having an impact on this segment of the market. ...Read more
Property
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
