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REINSW condemns land tax increase as anti-growth
“Every other government in Australia and globally are trying to stimulate the economy, not drive it further into the ground,” said REINSW President Steve Martin.
“You can’t tax people into prosperity and the simple reality is that it won’t be just the wealthy who suffer.
“Landlords will pass on to tenants, the people who can least afford it, the 25% increase in land tax proposed by the Rees Government.
“The trickle down effect will mean that property investors have yet another tax burden to consider when they make the choice to buy or build housing stock.
“If the cost of buying a home for these investors becomes more expensive, that means they have less disposable income to buy into the rental market – the losers will be the renters the Premier misguidedly thinks he is protecting.
“The IMF, international governments, the Australian Government, as well as banks are doing everything they can to make capital affordable and available, to stimulate the economy and create incentives for key markets such as property.
“But not in New South Wales!
“On the one hand the Prime Minister is trying to stimulate activity with $10 billion and on the other hand the Rees Government is trying to douse any activity in the property sector.
“Raising a tax at a time of economic crisis, irrespective of the income bracket, is economic madness.
"The NSW Government has learned nothing from the disastrous effects of the Vendor Tax; the decision to increase land tax at this time with such a fragile economy may even eclipse that poor decision.
“If the NSW Government wants to deepen the downturn in the NSW economy then it is going about it the right way,” said Mr Martin.
Please direct media enquiries to Julian Brophy on 0408 276 749.
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