NSW budget fails to deliver: REINSW

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Jun 21, 2017

NSW budget fails to deliver: REINSW

The NSW government has failed to help those wanting to buy property, says John Cunningham, president of the REINSW.

NSW Treasurer Dominic Perrottet hands down the NSW budget yesterday.
John Cunningham, president of the REINSW.

Despite the good intentions of the package to support first-home buyers, the NSW government has failed to help those hoping to buy property, says John Cunningham, president of the Real Estate Institute of New South Wales.

The NSW government has missed an opportunity to pass on some of the "reward" from booming property markets to property consumers, says Cunningham.

“The NSW government has seen an increase of nearly 10 per cent to $6.8 billion on the stamp duty collected from the sale of homes in NSW,” he said.

“Stamp duty collected is projected to rise to $7.2 billion next year, or a 5.9 per cent increase, and up to $8.5 billion in 2020-21, an average annual growth of 5.4 per cent over the next three years," said Cunningham.

“And yet again the NSW government has failed to address stamp duty brackets which have been left untouched for the last 30 years," he said.

“The government continues to gain from its failure to recognise that bracket creep is an inhibitor to supply," said Cunningham.

Cunningham said the high rates of stamp duty prevent retirees from downsizing, tying up valuable stock of family homes.

“Retirees who are sitting on large family homes have been given no incentive to downsize. A simple review of bracket creep would assist them to make the decision to sell," he said.

Cunningham said lowering the rate of stamp duty for downsizers could actually result in increased government revenue due to the increase in market activity.

“Helping downsizers with reduced stamp duty is one of the key ways to instantly help with the supply issue as it creates increased market activity with no loss of revenue for the government. In fact, it has been projected that there could be a gain in government revenue," he said.

“The NSW Government has given itself a pat on the back and continues to put its hand out to ordinary Australians who are trying to put a roof over their heads,” Cunningham concluded.