COVID-19 latest information on Stamp duty as the NSW Treasurer announces intentions to abolish Stamp

The REINSW supports and commends the NSW Treasurer’s commitment to overhaul the taxation regime currently applied to the property industry.

Whilst there is no such thing as a good tax, it is universally accepted that a broad-based tax system has less impact on economic activity. Taxation should be a consequence of a transaction, not a consideration.

REINSW CEO Tim McKibbin says “the acquisition of goods and services subjected to the impost of the Goods and Services Tax (GST) - a broad-based tax - rarely if ever influences the consumer’s purchasing decision. By contrast transfer (stamp) duty is a very narrow-based tax and is a significant cost attaching to the acquisition of a property.”

“For this reason, transfer duty is a consideration, not a consequence of the transaction,” says Mr McKibbin. “Accordingly, we see people renovating their property rather than selling and buying a property that better responds to their current lifestyle.”

“A tax that influences purchasing decisions, is a bad tax. The NSW Treasurer has correctly described transfer (stamp) duty as inequitable and inefficient.”

Source: https://www.reinsw.com.au/Web/Posts/Media_Releases/2020/REINSW_supports_relaxing_of_restrictions_and_overhaul_of_NSW_taxsystem.aspx

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