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NSW budget fails to deliver for consumers

20 June 2017

Despite the good intentions of a package to support first homebuyers the NSW Government has failed to deliver for those seeking to purchase property.

REINSW President John Cunningham said the NSW Government has again missed the opportunity to pass on the real reward the budget should have delivered all property consumers.

“The NSW government has seen an increase of nearly 10 per cent to $6.8 billion, on the stamp duty collected from the sale of homes in NSW,” Mr Cunningham said.

“Stamp duty collected is projected to rise to $7.2 billion next year or 5.9 per cent and up to $8.5 billion in 2020-21, an average annual growth of 5.4 per cent over the next three years. 

“And yet again the NSW government has failed to address stamp duty brackets which have been left untouched for the last 30 years. 

“A review of stamp duty brackets would assist all residents of NSW. Instead the government continues to gain from its failure to recognise that bracket creep is an inhibitor to supply.

“Retirees who are sitting on large family homes have been given no incentive to downsize. A simple review of bracket creep would assist them to make the decision to sell. We also believe other incentives, like reduced stamp duty granted to first homebuyers, should be targeted towards older Australians. 

“Helping downsizers with reduced stamp duty is one of the key ways to instantly help with the supply issue as it creates increased market activity with no loss of revenue for the government. In fact, it has been projected that there could be a gain in government revenue. 

“Instead the NSW Government has given itself a pat on the back and continues to put its hand out to ordinary Australians who are trying to put a roof over their heads,” Mr Cunningham said.