Consequences of the NSW Government's Property Tax Reform
- The NSW Government’s announcement regarding the phasing out of stamp duty and the introduction of another tax, has led to significant adverse impacts on the Australian property market.
- REINSW CEO Tim McKibbin discussed how ‘the property taxation system had always been in need of reform but regards the new proposal as a less than favourable option for people already finding it difficult to afford property’.
- He also felt that there was no “consultation” with the community regarding the decision and a lack of detail provided.
- This property tax will be an ongoing burden paid by property owners, instead of a large lump sum amount that is stamp duty.
- There is still a great concern regarding the aftermath of such a drastic taxing change, with many questioning whether stamp duty would be reintroduced on top of this land tax.
- The impact of such a proposal will lead to changes in house prices and no potential savings for buyers as they will be burdened with land tax for life.
- Housing affordability will not be improved by the exchange of one form of property tax to another, with many people abandoning their search for property, to wait for further details by the Government.
- This will have an extremely poor effect on the Australian economy at large, as the property market has always played a huge role in the financial wealth of the state.
