MEDIA RELEASE: As the NSW Government prepares to deliver a tough Budget, in which expectations on property owners to carry a disproportionate tax burden will again be intensified, the Real Estate Institute of NSW (REINSW) has reminded the community of the huge contribution property consumers already make to the state’s economy.
Revenue NSW figures show that the Government has already collected nearly $1 billion in stamp duty more this financial year than last – and the June figures aren’t in yet, so there’s still a month to go.
In FY23, property consumers contributed nearly $9.9 billion to the NSW economy. This financial year, the contribution already stands at over $10.5 billion.
The REINSW says Government is already overly dependent on tax from property consumers. To expect property owners to now carry an even greater burden, as they will through Government’s land tax reforms, is unfair and reckless, says CEO Tim McKibbin.
“The property industry has for many years been the engine of the NSW economy as consumers in other asset classes escape the exorbitant amount of tax property consumers are routinely slugged with,” Mr McKibbin says.
“Now, as we all acknowledge the difficult economic situation, Government’s answer is to double-down on the pain experienced by those already doing the heavy tax lifting.
“It’s little wonder many people are choosing to put their money into other investments, and every time the level of investment in residential property declines, the housing crisis deepens.
“Government tells first home buyers, key workers, renters and those in need of a home that they are the priority. That delivering more homes is their focus. Then, instead of encouraging housing investment, they increase tax and discourage investment.
“Attempting to tax new homes into existence has failed and will continue to fail. Those people they claim to be prioritising deserve, at the very least, an honest narrative,” he says.
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For any further information
Please contact Tim McKibbin, REINSW Chief Executive Officer, 0415 931 013, [email protected]
About REINSW
The Real Estate Institute of New South Wales (REINSW) is the peak industry body for real estate agents and property professionals in NSW. It represents more than 2000 agencies across residential sales, property management, commercial, strata management, buyers’ agency, agency services and auctioneering. Established in 1910, REINSW works to improve the standards, professionalism and expertise of its members to continually evolve and innovate the industry. It lobbies the government and industry on behalf of members, develops new products and services to benefit agencies and professionals, and offers training and ongoing professional development. For more information, visit reinsw.com.au.