Deliver Stamp Duty Reforms This Christmas: REINSW
It’s time for the premier to put something under the Christmas tree for those seeking to purchase a home in the form of a review of unfair and outdated stamp duty, according to the Real Estate Institute of New South Wales.
REINSW President Leanne Pilkington said after more than 30 years of successive Governments ignoring this issue the premier must recognise the barrier that stamp duty bracket creep is placing on the purchase of a home.
“For too long the government of the day has sat back and allowed property consumers to continue to be overtaxed,” Ms Pilkington said.
“This conduct is unjust, unfair and unconscionable.
“A major inhibitor to placing a property on the market is the huge burden of stamp duty which has grown to a level that can only be classified as ridiculous,” Ms Pilkington said.
Stamp duty of $50,302 was payable on a property with the median house price of $1.178,417* million in June 2017, this compares to $11,407 on the median house price of $242,952 in June 1997 when the current stamp duty rates were introduced.
“As a result of high stamp duty rates people staying in their homes for longer and renovating instead of selling and moving to a more appropriate home,” Ms Pilkington said.
According to data from CoreLogic, the time that people are staying in their homes has increased to 11.7 years. It was previously around 7 years.
“Tax should be a consequence of a transaction, not a consideration,” Ms Pilkington said.
“This year’s reforms to stamp duty is nothing more than a political and disingenuous initiative when one looks at the median house and unit price in Sydney. Government is raking in billions of dollars from the property industry, it’s time to give some back.
“We are seeing our best and brightest relocating out of the state because it does not make sense for them to hand the government huge sums of dollars for the privilege of buying a home.
“The government must look at where its priorities lie. What is more important? Enabling people to own their own home or building football stadiums?
“We urge the premier to undertake a full review of stamp duty in 2018,” Ms Pilkington said.