Sydney 17 July 2015. It is time for the NSW government to stop discussing stamp duty and take clear action, according to the Real Estate Institute of New South Wales.
REINSW President Malcolm Gunning said REINSW had been highlighting the inefficiencies of stamp duty for too long without action from the state government.
“Stamp duty clearly distorts prices and adversely effects property transactions,” Mr Gunning said.
“We have to stop the talk and start to see action. The state has got to put its own self-interest aside for the benefit of the broader economy.
“While we are calling for an abolition of stamp duty, a first step, as a revenue neutral initiative, is to address the stamp duty brackets which have not been adjusted for 30 years.
“This will have no impact on the state because there is clear evidence that a reduction in stamp duty rates will generate additional sales.
“We recognise that ultimately if stamp duty is going to be abolished an increase in GST will be necessary, which will take involvement from the Federal Government.
“However, it is time for the NSW Government to stop hiding behind the Commonwealth and start making real decisions for the future of our great state.
“Something can and should be done now. The message is clear and simple, review outdated stamp duty brackets and the additional market activity will have a positive flow on effect for the entire NSW economy,” Mr Gunning said.