|
CEO's desk
 |
|
Check out the REINSW CEO's blog to see what Tim McKibbin has to say on a wide range of issues affecting the real estate industry, from land tax and stamp duty to housing affordability and the impact of the rental crisis.
Share your views and engage in discussions with Tim and other members by commenting on the blog.
Click here to go to the REINSW CEO's blog. |
In his monthly video update REINSW CEO Tim McKibbin keeps you informed about the work REINSW is doing on behalf of members and the industry. Click here to view.
|
Our push to cut stamp duty
REINSW is kicking off the year with the launch of a new political and media campaign to get action on stamp duty in NSW.
For too long we have seen the Government’s addiction to stamp duty revenue overcoming any real commitment towards reforming what is one of the most punitive taxation regimes in the country.
The only time we saw reform in this area was the introduction of the vendor tax and we all know how that ended up! Not only were vendors hit hard by a ‘double tax dip’, but Government revenues actually declined during the period the tax was introduced.
It raises an important question: if you raise taxes and revenues fall, does the opposite hold true? Do revenues increase if tax rates are cut?
REINSW has asked that very question and our research shows that when property transfers taxes were cut in Western Australia and the Northern Territory, government revenues actually increased.
Between 2003 and 2006, Western Australian cut property transfer duties by 0.9 per cent, yet related revenues rose by $706 million.
Similarly, in the Northern Territory, property transfer rates were cut by 0.45 per cent and resulted in an increase of $20 million in related revenue – a rise of 20 per cent.
REINSW has modelled what effect the Western Australian experience would have in NSW and has found revenues would rise substantially.
The evidence is clear that additional stimulation of the market is generated by an easing of property transfer rates, providing greater incentives for buyers and at the same time, protecting revenue streams for government.
REINSW will take this research to the Government and the media with the aim of stimulating serious public debate about the real economic benefits of cutting tax.
Tim McKibbin
REINSW CEO |
|
|
|
|
|
|
| |
|
|