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{{propApi.successMessage}} {{region}} Change locationBring tax down and housing will go up (NSW)
Bring tax down and housing will go up (NSW)
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“The NSW government has made some excellent progress towards speeding up building approvals, but an approval alone doesn't guarantee the building will be built.
“Many already-approved projects in Greater Sydney will cost more to deliver than how much the apartments can be sold for.
“In the lead up to the NSW Budget, we are calling on Treasurer Mookhey to implement a range of tax reforms targeted at boosting the supply of housing.
“All levels of government are so reliant on the revenue generated through housing that they are hesitant to make a bold move. The perverse outcome though is that the tax is so high, the houses don't get built then government doesn't get any revenue.
“Taxes on housing discourage housing investment, which translates into further-reduced demand and supply of housing. This helps no one - government included.
“Housing is a heavily taxed good in the economy, only after the ‘sin taxes’ of alcohol and tobacco, even though it is considered an essential commodity, on par with food and water.
“Recently tabled changes to workers’ compensation in NSW will bring down some of the costs in delivering housing.
“HIA supports that intent, but we also have a raft of other recommended reforms that could put downward pressure on the cost of new housing.
“Property taxation sits within the remit of State and Local Government. We therefore need bold tax reform from both levels of government to boost housing, and we need it now,” concluded Mr Armitage.
What tax reforms are needed?
A full stamp duty exemption for first home buyers building or buying newly constructed houses and apartments.
Remove the Foreign Investor surcharges on stamp duty and land tax for off-the-plan sales in NSW to provide the capital injection needed to get projects out of the ground.
Reduce local infrastructure contributions and incentivise councils to charge more equitable rates that can deliver the infrastructure which is needed by the whole community.
Lift the small business payroll tax exemption threshold. Most subbies delivering the housing we need are small businesses, and the threshold has not been lifted in six years, but wages have increased significantly.
For more information please contact:
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