Consumer News

By Tim McKibbin – REINSW CEO

The NSW Government used their recent budget to announce a first homebuyers package. While conceptually a worthwhile initiative it is not going to solve the problem, or help other classes of property consumers enter the market.

The high cost of stamp duty is one of the main reasons why people are reluctant to sell their homes and relocate to a dwelling that better responds to their needs. Yet despite this, the NSW Government has failed to address stamp duty bracket creep for the last 30 years. 

The NSW Government needs to deal with this issue if it wants to improve housing supply. For example, empty-nesters continue to own large homes as they have no incentive to downsize, whilst families are struggling purchase a home to due lack of supply.

By reducing stamp duty the government would encourage more sales, and therefore any loss of revenue.