Industry group calls for stamp duty reinvestment
Industry group calls for stamp duty reinvestment
Posted on Wednesday, October 29 2014 at 3:21 PM
The Real Estate Institute of New South Wales (REINSW) says its State Government should support first homebuyers with stamp duty revenues.
According to John
Cunningham, deputy president of the REINSW, Office of State Revenue figures indicate
stamp duty paid on residential property sales has
risen $500 million compared to the September quarter in 2013.
“This is already more than double
the June State Budget forecast of a $200 million increase in stamp duty revenue
for the entire 2014/15 financial year.”
Cunningham says the proceeds should
go towards reinstating first homeowner grants for established property, which
is preferred by first-time buyers.
While stimulation of the
construction industry was among the planned benefits of restricting grants to new
housing only, Cunningham says the approach is failing.
“By
offering grants on new builds only, they’re pitting first homebuyers against cashed
up investors and as well as foreign investors.”
The REINSW
has also called for a review of the stamp duty thresholds.
“There has
never been a review of the transfer duty thresholds in NSW to recognise bracket
creep.
“The
current two lowest transfer duty thresholds in NSW have been in place since 18
December 1974 – 39 years – while the other thresholds (apart from the premium
property duty) have been in place since 18 December 1986, some 27 years.”
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