REINSW: The Real Week Ahead

“It appears the NSW Premier intends to push forward with the plan to replace stamp duty with the property tax opt-in scheme.
“The full details will presumably be unveiled in the upcoming budget but as the REINSW has pointed out before, swapping one tax for another may result in unintended consequences which could distort the market.
“For instance, this reform has the potential to create a two-tiered market. Like-for-like properties, one of which will incur stamp duty and the other which will be subject to the ongoing property tax, may not be in equal demand. The prices achieved for these properties may differ because of this.
“The latest Revenue NSW figures on transfer duty revenue were released last week. Again, over $1 billion in stamp duty was collected during May, taking the financial year’s takings to in excess of $2 billion above forecast with another month to go.
“Obviously the state’s dependence on revenue from property purchasers is excessive and most agree, from an affordability perspective, that stamp duty is a bad tax and a major burden for people.
“But we question whether replacing one tax with another is the right solution.
“No doubt there will be more commentators weighing in on this reform leading up to the budget. We can only hope the NSW Government will commit to appropriate consultation with industry before legislation is enacted.
“The REINSW Roadshow is back on the regional trail this week as we visit Ballina, an area that has experienced significant growth through the pandemic, placing real pressure on the local housing market.”
All quotes can be attributed to Tim McKibbin, Chief Executive Officer, REINSW.
For additional commentary on these topics and all other matters related to the NSW residential market, contact:
Tim McKibbin, Chief Executive Officer, REINSW Mobile: 0415 931 013 tmckibbin@reinsw.com.au
About REINSW
The Real Estate Institute of New South Wales (REINSW) is the peak industry body for real estate agents and property professionals in NSW. It represents more than 2000 agencies across residential sales, property management, commercial, strata management, buyers’ agency, agency services and auctioneering. Established in 1910, REINSW works to improve the standards, professionalism and expertise of its members to
continually evolve and innovate the industry. It lobbies the government and industry on behalf of members, develops new products and services to benefit agencies and professionals, and offers training and ongoing professional development. For more information, visit reinsw.com.au.