After collecting a record $7.29 billion in stamp duty, which is $1.2 billion over budget forecasts, the New South Wales Government has chosen to ignore the plight of first home buyers by failing to reintroduce grants for existing properties and cut stamp duty rates, according to the Real Estate Institute of New South Wales.
REINSW President Malcolm Gunning said the figure, which includes residential and commercial property transactions, is also $450 million more than forecast in the December half-yearly review.
“The NSW government has become greedy,” Mr Gunning said. “First home buyers have once again been left out in the cold despite property being the biggest contributor to the NSW economy.
“We are disappointed at the decision by the NSW Government to refuse to act to reinstate first home buyer grants on existing property, which again highlights that the Treasurer and Premier are out of touch with the market.
“The NSW Government has also chosen to ignore the stamp duty bracket creep which adds thousands of dollars to property transactions and is misguided in its view that a reduction in stamp duty rates, left untouched in 30 years, would fuel the affordability crisis that is urrently being faced in Sydney.
“Lower volumes drive higher property prices, while higher volumes slow the market and improve affordability.
“In the future, the government should also look at creating incentives for people to relocate from Sydney to regional NSW in the form of stamp duty concessions and job creation as a way of developing this great state,” Mr Gunning said.
For further information or to interview REINSW President Malcolm Gunning, please contact Helen Hull at [email protected] or on 0419 642 961.