NSW has been urged to follow the lead of the ACT by passing a housing-friendly Budget.
The Real Estate Institute of NSW praised the ACT Government for last week’s Budget, which cut tax rates for transfer duty and made it easier for pensioners to downsize.
President Malcolm Gunning said NSW should also pay attention to the real estate market when it handed down its Budget on June 17.
“Stamp duty rates in NSW have not been reviewed for more than 40 years, which means that the average home is being taxed well beyond what parliament initially intended,” he said.
“Although the ACT still imposes higher rates of transfer duty than NSW on residential properties valued between $800,000 and $3 million, average homes are below $800,000, which means the lower rates in the ACT are fairer than in NSW.”
Mr Gunning also applauded the ACT’s new Home Bonus Scheme, which is designed to help over-60s move to more suitable accommodation by reducing the conveyance duty payable.
“These incentives for older Australians will help with the current shortage of accommodation and housing affordability,” he said.
“It is a win-win for everyone, providing support to all levels of the market including first home buyers.”