The NSW government is facing a budget shortfall with land related transactions and total stamp duty collected below current budget forecasts for the first three months of the 2016-2017 financial year, according to the Real Estate Institute of New South Wales.
REINSW President John Cunningham said data from the NSW Office State Review shows that for July, August and September 2016 both the number of land-related transactions and the total stamp duty collected from those transactions is less than for that period last financial year.
“The NSW Government’s failure to address stamp duty bracket creep is beginning to hit them in the hip pocket. It’s time to review and amend the out-dated stamp duty brackets that are inhibiting people from buying and selling property in NSW,” Mr Cunningham said.
There were 60,034 land related transactions in the first three months of the 2015-2016 financial year and this financial year there have been only 54,582. Last month, there were 17,988 transactions compared to 20,447 in 2015, some 12 percent less,” he said.
Approximately $2.157 billion in transfer duty was collected from land transfer transactions in the first 3 months of 2015. This financial year some $2.019 billion or $138 million less has been collected. The total Budget for 2016-17 for “All” transfer duty is $8.777 billion and at the current rate the NSW is facing a budget shortfall.
“If not for the continued value growth, the loss of budgeted revenue could be far greater. It’s on a slippery slope unless government can find ways to generate more activity,” Mr Cunningham said.
“It is a disgrace that stamp duty bracket creep has not been reviewed for the past 30 years and Government’s failure to address this issue is unconscionable and the market is now punishing them for it,” Mr Cunningham said.
