Powered by momentummedia
nestegg logo
Powered by momentummedia
Powered by momentummedia
nestegg logo
nestegg logo

 

 

Invest

Should stamp duty go?

  • May 05 2020
  • Share

Invest

Should stamp duty go?

By Cameron Micallef
May 05 2020

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.

Dominic Perrottet

Should stamp duty go?

author image
  • May 05 2020
  • Share

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.

Dominic Perrottet

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.

Advertisement
Advertisement

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.”

Should stamp duty go?
Dominic Perrottet
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

About the author

author image

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

more on this topic

more on this topic

From the web

Recommended by Spike Native Network

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.