NSW Budget: Stamp duty revenue driving infrastructure
Stamp duty may be a tax that homeowners grit their teeth and pay but the NSW Budget shows that it’s been good for NSW infrastructure, with the Government prioritising support for housing construction.
According to the Property Council of Australia surging stamp duty revenue has doubled in the past four years – rising from $3.6 billion in 2011-12 to $7.2 billion this year. Stamp duty now accounts for over one quarter of all state tax revenue and is poised to top $8 billion in 2017-18.
Treasurer of New South Wales Gladys Berejiklian said in the Infrastructure Statement 2015-16 that the Budget will provide $590.6 million to bring forward planning for major Rebuilding NSW projects and to commence construction of a number of these projects.
The Property Council’s Executive Director Glenn Byres described the Budget as making the “right choices on the infrastructure needed to underpin the growth and liveability of our cities.”
Apart from providing support for housing construction, such as $400 million allocated to the Housing Acceleration Fund, the Goverment has made a commitment to a new rail station at Barangaroo.
“Game-changing infrastructure projects are a central feature of the budget and will be accelerated once the proceeds from the poles and wires kick in.”
While stamp duty is now driving the NSW economy, Byres warned that there needs to be a guard against downside risks.
“We hope NSW continues to step up in the national tax reform debate and begin shifting away from inefficient taxes that hurt housing affordability and the economy.”